Oil prices wobbled on Monday as investors refocused on tight supplies, however, sentiment was still fragile following a 6 percent drop the previous day amid concerns about slowing global economic growth and fuel demand.
The crude's near $ 10 per barrel drop, in the last week, could be a positive for the consuming countries. Crude prices have registered their first weekly loss since the month of April.
Globally, investors are worried that rate hikes from major central banks could slow growth apart from the US Dollar Index trading at a nearly 20-year high. The US production is the highest since April 2020.
However, the US markets are shut on Monday, so investors expect lower volumes and exaggerated moves for Asia and Europe today.
The markets believe that $110 per bbl should hold as support. If that breaks, then expect another $ 5-7 per bbl decline for the crude prices.
Brent crude futures gained 20 cents, or 0.2 percent, to $113.32 per barrel by 01:05 GMT, after rising as much as 1 percent earlier. Front-month prices tumbled 7.3 percent last week.
US West Texas Intermediate crude was at USD 109.55 a barrel, down 1 cent after rising more than USD 1 in early morning deals. Front-month prices dropped 9.2 percent last week, the first decline in eight weeks.
Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.
(with input from Reuters)
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