The price of crude oil is rising to start the week as U.S. recession fears ease and some traders bet that the commodity has bottomed after a three-week decline.
Brent crude oil, the international standard, is up $1.41, or 1.90%, to $76.71 U.S. a barrel in early trading on May 8.
West Texas Intermediate (WTI) crude oil, the U.S. benchmark, gained $1.50, or 2.10%, to trade at $72.84 U.S. per barrel.
Brent had finished last week with a decline of 5.30% while U.S. crude oil fell 7.10% on the week. Both benchmarks had fallen for three consecutive weeks for the first time since last November.
U.S. investment bank Goldman Sachs (GS) issued a note to clients over the weekend saying that the recent selloff in oil has been “overblown” given the demand outlook.
A round of voluntary output cuts by some members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) begin this month.
The next meeting on OPEC+ is scheduled for June 4 of this year.
However, OPEC’s latest monthly oil market report will be delivered on May 11, providing an updated reading on the global demand and supply outlook for crude.