|Bitumen Africa|

Monday, June 10, 2024 14:00 AM

Oil rose 3% to settle near $78 a barrel, recouping losses from last week's sell off as trader's piled back into the commodity.

US crude followed broader market's higher.

News of additional sanctions on Iran's shipping sector also supported prince's, Which last week slumped to a four_month  low after OPEC and it's allies' left the door open to restoring some output later this year.

Official's have since clarified that they could pause or reverse production changes if necessary.

"Today's recovery comes on the back of a three_week drop"

driven by OPEC+ is recent decision, Fawad Razaqzada, a market analyst at City Index and Forex.com, wrote in a note Monday.

"At the start of this week, traders have decided to by the dip. With the US driving season underway, demand is likelyto recover, keeping the downside limited _ for now".

Investors are now awaiting monthly oil reports from the US government, International Energy Agency, and OPEC+ due Tuesday and Wednesday, that will shed light on the outlook for the rest of the year. The Federal Reserve also releases it's decision on interest rates on Wednesday.

Crude has dropped since early April on a weakening physical market and fading geopolitical risk premium. After OPEC+ is announcement of a potential rollback in cust, net_bullish bets for the global benchmark fell by the most on record.

Elsewhere, Iraq said it expects to soon reach a final agreement with the semi_autonomous region of Kurdistan and international oil companies there to restart oil export's that have been disrupted for more than a year.

price:

• WTI for July delivery rose 2.9% to settle at $77.74 a barrel in New York.
• Brent for August settlement gained 2.5% to settle at $81.63 a barrel.