Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 05 08T005800Z 2 LYNXMPEJ4700O RTROPTP 4 PIONEER NATL RSC RESULTS - Business Express

Oil climbs almost 3% as recession fears begin to fade

Oil climbs almost 3% as recession fears begin to fade

By Alex Lawler

LONDON (Reuters) – Oil rose almost 3% on Monday as U.S. recession fears eased and some traders took the view that crude’s recent price slide was overdone with three straight weekly declines for the first time since November.

A healthy U.S. jobs report for April helped oil to climb by about 4% on Friday even though labour market strength could compel the Federal Reserve to keep interest rates higher for longer.

Brent crude was up $1.83, or 2.4%, at $77.13 a barrel by 1200 GMT. U.S. West Texas Intermediate (WTI) crude gained $2.06, or 2.9%, to $73.40.

“Oil’s rebound follows energy stocks’ comeback on Wall Street last Friday after the U.S. reported strong job data, which eased concerns about an imminent economic recession,” said CMC Markets analyst Tina Teng.

Brent had finished last week with a decline of about 5.3% while U.S. crude plunged by 7.1% even after Friday’s rebound. Both benchmarks were down for three weeks in a row for the first time since November.

Ole Hansen, head of commodity strategy at Saxo Bank, said oil’s recent drop looked excessive.

“An oversold market condition combined with Brent managing to find support ahead of the March low forced recently established short sellers to seek cover, potentially highlighting that the recent sell-off was overdone,” he said.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Goldman Sachs analysts on Saturday said that concerns over near-term demand and elevated supplies were “overblown”.

A round of voluntary output cuts by some members of the Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, begin this month and the group holds its next meeting on June 4.

Before then, U.S. consumer price inflation figures for April will be in focus on Wednesday, potentially influencing the Fed’s stance on future interest rate decisions.

OPEC’s latest monthly oil market report is due on Thursday, providing an updated reading on the demand and supply outlook.


(Reporting by Alex Lawler; Additional reporting by Sudarshan Varadhan; Editing by David Goodman)


Recent Post: