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Brent crude rose 67 cents, or 0.94%, to $71.73 a barrel by 0901
GMT while West Texas Intermediate crude futures were up 68
cents, or 1%, at $68.35.
Prices of Brent crude had fallen in each of the past six trading
sessions, retreating by more than 11%, or nearly $9 a barrel, to
register the lowest closing price since December 2021 on Friday.
Analysts said Monday's rebound was partly in response to a
potential hurricane near the U.S. Gulf Coast.
A weather system in the southwestern Gulf of Mexico is forecast
to become a hurricane before it reaches the northwestern U.S.
Gulf Coast, the U.S. National Hurricane Center said on Sunday.
The U.S. Gulf Coast accounts for about 60% of U.S. refining
capacity.
"A small recovery in prices is under way this morning, inspired
by hurricane warnings that might threaten the U.S. Gulf Coast,
but the wider conversation remains on where demand will come
from and what OPEC+ can do," said PVM analyst John Evans.
The OPEC+ oil producer group last week agreed to delay a planned
output increase of 180,000 barrels per day for October by two
months in reaction to tumbling crude prices
Trading houses Gunvor and Trafigura expect oil prices to range
between $60 and $70 a barrel because of sluggish Chinese demand
and persistent oversupply, executives told the APPEC conference
in Singapore on Monday.
Meanwhile, Morgan Stanley cut its Brent price forecast for the
fourth quarter to $75 a barrel from $80, adding that prices are
likely to remain around that level unless demand weakens
further.
The weakness in China is driven by economic slowdown and
inventory destocking, Jeff Currie, of U.S. investment company
Carlyle Group, told APPEC.
Refining margins in Asia have slipped to their lowest seasonal
levels since 2020.
A U.S. jobs report on Friday showed that August non-farm
payrolls increased by less than market watchers had expected.
A decline in the jobless rate could slow the pace at which the
Federal Reserve cuts interest rates, analysts said. Lower
interest rates typically increase oil demand by spurring
economic growth.
(Reporting by Robert Harvey in London and Colleen Howe in
BeijingEditing by David Goodman)
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