LONDON (Reuters) – Oil rose & # 39; above $ 60 a barrel on Monday, while recovering some of the session & # 39; before, nearly 7 percent drop & # 39 ;, although uncertainty over the global economic growth limited gains.
REPORTING OF & # 39; FITTEĠI: Oil Pump seen expiry addition Scheibenhard, near Strasbourg, France, on 6 & # 39; October 2017. REUTERS / Christian Hartmann / File Photo
The Brent crude futures rose by LCOc1 & # 39; & # 39 rate; $ 1.84 to $ 60.64 a barrel in b & # 39; 1400 GMT, while the futures & # 39; US CLc1 gained $ 1.47 to $ 51.89 a barrel after the sale Friday, which saw both contracts reached at least 13 months.
"It's hard to say whether $ 60 is a new standard, because it seems" normal "now," said the analyst gas and gas & # 39; Cantor Fitzgerald, Jack Allardyce.
"The recent weakness seen dramatic because of the lack of & # 39; current catalysts – seems to have been driven by an impending sense of & # 39; doom in & # 39; mid weak equities, geopolitical, subsequent request & # 39; softening and increase in supply ", he said.
The International Energy Agency predicts that global oil demand will get & # 39; 100 million barrels per year in 2019, and growing by & # 39; & # 39 rate; 1.4 million barrels per day, but it failed in its initial assessment & # 39; June & # 39; 1.5 million BPD.
Increase in the dollar reduced demand in & # 39; the major emerging market economies, costs & # 39; higher self and the threat to global growth from the trade dispute between the US and China pushed investors outside the axes aligned more closely with the global economy, such as equities or oil.
F & # 39; only in November, the fund & # 39; guard withdrew more than $ 12 billion from oil market, based on a reduction in net long-term records & # 39; Brent crude futures and options and U.S. against average oil price for the month.
Even the prospect of & # 39; cutting close to the output from the Organization of Petroleum Exporting Countries of was not enough to stop the slide.
"The oil prices are already in & # 39; exaggerated stage & # 39; reduction. This is because it should be clear to the latest now that the OPEP will agree to a drastic reduction in production at the beginning of & # 39; December, "said Commerzbank in & # 39; note.
Analysts at & # 39; Fitch Solutions said that even cutting supply expected from the Petroleum Exporting Countries (OPEC) following an official meeting & # 39; December 6 "can & # 39; is not enough to combat the wave forces ".
The the options market shows that investors in rough Brent, which are more closely linked with the OPEP production, increased their share & # 39; contracts that give the owner the right, but not the obligation, to sell oil futures below the futures price of & # 39; percent.
This compares with & # 39; & # 39 increase; Only 4.5 percent in & # 39; & # 39 holdings, options give the owner the right to buy oil futures & # 39; above the current price by a certain date.
Build in & # 39; Order 2019 Brent crude bearish options: tmsnrt.rs/2RgxUQw
The global supply & # 39; crude oil and demand balance: tmsnrt.rs/2PKtzIy
Additional reporting by Henning Gloystein in & # 39; SINGAPORE; Editing by Alexander Smith and Louise Heaven