Crude oil futures rose yesterday, rebounding from the previous session’s slump as investors fretted again about potential disruptions to Middle East oil supplies after talks between world powers and Iran over its nuclear program ended in Baghdad without an agreement.
Trading volume was light and prices remained substantially below their highs for this year.
“We are seeing a repeat of Iran’s normal tactics — it extends an olive branch but in talks later, nothing happens, and this is muddling the oil markets,” said Kyle Cooper, managing partner at IAF Advisers in Houston, Texas, according to Reuters.
By 1835 GMT, Brent July futures were up $1.09 at $106.65 a barrel. Brent touched a session high of $106.94 before weak Chinese and European economic data sparked selling. Then, it fell as low as $105.03, the lowest intraday price since Dec. 20 — down more than 18 percent from its 2012 high of $128.40 struck on March 1.
US crude for July settled up 76 cents at $90.66 a barrel, after climbing to an early high of $91.52.
On Wednesday, it settled at $89.90, the lowest close for front-month US crude since Oct. 21. US crude is down about 19 percent from its 2012 high of $110.55, also hit on March 1.
Reflecting investor caution, volumes were light, with Brent trading down 30 percent from its 30-day average and US crude dealings 45 percent lower from its 30-day average, according to Reuters data.
