SINGAPORE (Reuters) – The oil prices on Monday recovered some losses by almost 8 per cent have passed the & # 39; previous session, but Brent failed to hold over $ 60 per barrel generally financial markets weak.
RAPPLE OF & # 39; SEARCH: Oil escaping from a spout from the original 1859 & # 39; Edwin Drake launched the modern petroleum industry in the Museum and Park & # 39; Drake Well f & # 39; Titville, Pennsylvania U.S., 5 & # 39; October 2017. REUTERS / Brendan McDermid / File Photo
The crude oil futures of Brent & # 39; before LCOc1 increased by & # 39; 96 cents, or 1.6 percent, to $ 59.76 a barrel by 0745 GMT.
U.S. West Texas Intermediate (WTI) crude futures CLc1 rose by & # 39; 62 cents, or 1.2 percent, to $ 51.04 a barrel.
The partially realized gains for the week selloff, traders already separated "Black Friday".
Responding to the week falls in Brent and WTI, the crude futures & # 39; Shanghai of China on Monday to ISCcv1 decreased by & # 39; 5 percent, hitting negative threshold a & # 39; their day.
Judging by data & # 39; exchange, traders are preparing for further price reduction.
The short positions managed in crude futures WTI of & # 39; before, to profit from further price reductions, increased from low levels in the registry at & # 39; July to the highest number & # 39; short positions by October 2017.
(GRAPHIC: Price options & # 39; Brent put – tmsnrt.rs/2R8bJvM)
In addition, the number of & # 39; put – to give the trader an option but is not obliged to sell a financial instrument at a specific price – in February futures crude oil brent to $ 55 LCO5500N9 and $ 50 per barrel LCO5000N9 rose to record levels in October.
(GRAPHIC: Brent put options – tmsnrt.rs/2R9W1jK)
The pressure & # 39; down following a sharp increase in supply and decrease in demand growth momentum is expected to lead to an increase in oil supply until next year.
"The 2019 will be a couple years for the oil market as questions about the prospect of & # 39; global economy is declining and an increase in supply is expected to increase," said analysts at & # 39; Fitch Solutions on Monday.
Fitch said that even cutting the expected supply managed by the Petroleum Exporting Countries (OPEC) following an official meeting on December 6 "can & # 39; is not enough to counter the wave forces".
(GRAPHIC: The global supply demand for crude oil and demand balance – tmsnrt.rs/2PKtzIy)
The oil markets are also being affected by the slowdown of broader financial markets & # 39; & # 39 ;.
"2018 marked & # 39; clearly the end of the market as a & # 39; 10 years & # 39; Asian credit due to more stringent financial markets in Asia (especially China), and we expect it to remain & # 39; the event in 2019 ", said Morgan Stanley in & # 39; note released on Sunday.
"I do not think we are at the bottom of the cycle the & # 39; now", said the US bank.
The oil markets were also reduced by a strong US dollar. DXY, which rose against most of the other currencies this year, thanks to rates & # 39; interest increased to mixer of investors' money from other currencies and also assets such as oil , which are regarded as more risky by the greenback.
"Everything denominated against the USD is under pressure now, McKenna said.
Another risk to global trade and overall economic growth is the trade war between the two largest economies of the world, the United States and China.
"The trade conflict between the United States and China have a negative risk because it predicts that the United States impose charges & # 39; 25 per cent on all imports of China from Q1 2019" , said the bank and. J.P. Morgan f & # 39; note published Friday.
(GRAPHIC: Oil prices Stock vs. the Asian market – tmsnrt.rs/2R8dwku)
Reporting by Henning Gloystein; Editing by Joseph Radford and Richard Pullin