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Oil prices rebounded on Monday after Brent hit a one-and-a-half-year low on Friday, in a less pessimistic market and thanks to a tropical storm in the Gulf of Mexico.
The price of a barrel of Brent North Sea crude for delivery in November rose 1.09% to $71.84.
Meanwhile, the barrel of West Texas Intermediate (WTI) for October gained 1.54% to $68.71.
On Friday, Brent touched the symbolic level of $70.
“After a strong sell-off, the market is trying to recover,” said Phil Flynn of Price Futures Group. “But for now it’s tentative.”
“The pessimism that prevailed in the markets has eased,” Susannah Streeter of Hargreaves Lansdown noted in a research note. “Fears of a sharp decline in the global economy are easing.”
For Flynn, “the pessimism in the oil market went beyond the reality of the balance between supply and demand.”
Crude oil also benefited on Monday from the situation in the Gulf of Mexico, where Tropical Storm Francine formed, which according to the US weather services (NWS) could become a hurricane on Tuesday before making landfall on Thursday between northeastern Texas and southwestern Louisiana, a region with a lot of oil infrastructure.
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