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Oil Prices Bounce After Sharp Selloff

Published 26/11/2018, 15:26
© Reuters.
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Investing.com - Oil prices bounced back on Monday after the sharp decline in the previous session, U.S. crude’s worst slump in about three years, but did little to recover lost ground as worries over waning demand and increasing stockpiles continued to pummel prices.

New York-traded West Texas Intermediate crude futures jumped $1.68, or 3.33%, at $52.10 a barrel by 10:22 AM ET (15:22 GMT).

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., traded up $1.94, or 3.29%, to $60.98.

U.S. crude fell around 7% on Friday, extending its losses to more than 30% from the four-year high reached just last Oct. 3.

Investors remain concerned that a global economic slowdown will dampen demand even as key producers - mainly the U.S., Saudi Arabia and Russia - continue to ramp up production.

The U.S. Energy Information Administration reported last week that domestic crude supplies rose by 4.9 million barrels, up for a ninth-straight week, while U.S. output held at a record high of 11.7 million barrels per day.

OPEC is reportedly planning to push for production cut of 1 million to 1.4 million barrels per day when it holds its official meeting in Vienna on Dec. 6, but the well-telegraphed plans have done little to establish a floor under prices.

In other energy trading, gasoline futures surged 4.06% to $1.43.19 a gallon by 10:24 AM ET (15:24 GMT), while heating oil advanced 1.77% to $1.9033 a gallon.

Lastly, natural gas futures traded down 3.77% to $4.191 per million British thermal units.

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