He Petroleum It was rising on Monday as US recession fears faded and some traders viewed the recent fall in the price of crude as overblown, which posted three consecutive weekly declines for the first time since November.
Good April US jobs data helped oil rise close to 4% on Friday, even though the strength of the labor market could force the Federal Reserve to keep interest rates higher for longer.
He Brent crude was up $1.41, or 1.9%, at $76.71 a barrel, while the west texas United States Intermediate (WTI) was up $1.50, or 2.1%, at $72.84.
“The rebound in oil follows a rally in energy stocks on Wall Street last Friday, after strong US jobs data released that eased concerns about an impending economic recession,” said Tina Teng, an analyst at CMC Markets.
Brent ended the week down around 5.3%, while WTI plunged 7.1%, even after Friday’s rise. Both references chained three consecutive weeks down for the first time since November.
Ole Hansen, head of commodity strategy at Saxo Bank, said the recent drop in the Petroleum seemed excessive.
“An oversold situation in the market, combined with the fact that Brent managed to find support before the March low, forced newly established short sellers to look for cover, which could highlight that the recent sell-off was exaggerated,” he said.
Goldman Sachs analysts said on Saturday that concerns about near-term demand and increased supply are “overblown.”
