Oil prices rebound 1% on concerns wider Mideast conflict may cut supply
Oil prices rebounded by 1% on Tuesday, paring the previous session's loss, on supply concern amid an escalating Middle East conflict, stronger U.S. services sector data and a cut in production at Libya's Sharara oilfield.
Brent crude futures gained 76 cents, or 1%, to $77.06 a barrel by 0638 GMT, while U.S. West Texas Intermediate crude futures climbed 92 cents, or 1.26%, to $73.86.
On Monday, both benchmarks fell about 1% against a backdrop of falling global stock markets.
BP shares surged as much as 9% at the start of trade Tuesday, before settling back with gains of around 2%.
Price gains also occurred amid a broader rally in Asian equity markets after they plunged on Monday.
Worries over lower production at Libya's 300,000 barrel-per-day Sharara oil field buoyed prices further. Output at the field, one of the country's largest, has fallen by around 20% due to protests.
These production troubles have offset some of the earlier macro bearishness in the market, said ING analysts in a client note.
Reuters
Oil prices rebounded by 1% on Tuesday, paring the previous session's loss, on supply concern amid an escalating Middle East conflict, stronger U.S. services sector data and a cut in production at Libya's Sharara oilfield.
Brent crude futures gained 76 cents, or 1%, to $77.06 a barrel by 0638 GMT, while U.S. West Texas Intermediate crude futures climbed 92 cents, or 1.26%, to $73.86.
On Monday, both benchmarks fell about 1% against a backdrop of falling global stock markets.
BP shares surged as much as 9% at the start of trade Tuesday, before settling back with gains of around 2%.
Price gains also occurred amid a broader rally in Asian equity markets after they plunged on Monday.
Worries over lower production at Libya's 300,000 barrel-per-day Sharara oil field buoyed prices further. Output at the field, one of the country's largest, has fallen by around 20% due to protests.
These production troubles have offset some of the earlier macro bearishness in the market, said ING analysts in a client note.
Reuters
Oil prices rebounded by 1% on Tuesday, paring the previous session's loss, on supply concern amid an escalating Middle East conflict, stronger U.S. services sector data and a cut in production at Libya's Sharara oilfield.
Brent crude futures gained 76 cents, or 1%, to $77.06 a barrel by 0638 GMT, while U.S. West Texas Intermediate crude futures climbed 92 cents, or 1.26%, to $73.86.
On Monday, both benchmarks fell about 1% against a backdrop of falling global stock markets.
BP shares surged as much as 9% at the start of trade Tuesday, before settling back with gains of around 2%.
Price gains also occurred amid a broader rally in Asian equity markets after they plunged on Monday.
Worries over lower production at Libya's 300,000 barrel-per-day Sharara oil field buoyed prices further. Output at the field, one of the country's largest, has fallen by around 20% due to protests.
These production troubles have offset some of the earlier macro bearishness in the market, said ING analysts in a client note.
Reuters
comments
Oil prices rebound 1% on concerns wider Mideast conflict may cut supply
comments