Oil rises on small market bounce, but investors eye trade outlook
Oil prices rose on Monday, supported by bounce in Asian stocks, but analysts said sentiment remains cautious after financial markets plunge last week triggered by worries of slow global growth.
Front-month Brent crude oil futures LCOc1 were at 77.96 dollars a barrel, up 35 cents, or 0.2 per cent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at 67.89 dollars a barrel, up 30 cents, or 0.4 per cent, from their last settlement.
In spite of the gains and calmer financial markets early on Monday, sentiment among investors remained cautious after hefty losses last week.
There were also signs of a slowdown in global trade, with rates for dry-bulk and container ships – which carry most raw materials and manufactured goods – coming under pressure.
On the supply side, however, oil markets remain tense ahead of looming U.S. sanctions against Iran’s crude exports.
The sanctions are set to start next week and are expected to tighten supply, especially to Asia which takes most of Iran’s shipments. (Reuters/NAN)