Tue, 29 Sep 2020

Oil prices rebound after massive losses

10 Sep 2020, 06:30 GMT+10

NEW YORK, Sept. 9 (Xinhua) -- Oil prices climbed on Wednesday as the market tried to recover from considerable losses in the prior session.

The West Texas Intermediate (WTI) for October delivery rose 1.29 U.S. dollars to settle at 38.05 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery climbed 1.01 dollars to 40.79 dollars a barrel on the London ICE Futures Exchange.

The moves followed a noticeable dip in the previous session that saw the WTI and Brent sink 7.6 percent and 5.3 percent, respectively.

"This is chiefly due once again to higher risk aversion among market participants that saw stock markets come under considerable pressure," Eugen Weinberg, energy analyst at Commerzbank Research, said in a note Wednesday, explaining the latest price slump on the oil market.

"There is growing scepticism on the oil market as to whether demand will continue to recover as expected in the coming months," Weinberg said, noting "there is also a risk from the supply side if OPEC does not react to the renewed price weakness and concerns."

Despite recent declines, oil prices have already climbed significantly since April, buoyed by the coordinated and voluntary production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

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