Oil futures put supply worries aside Monday, with the U.S. benchmark ending a three-day losing streak as commodities enjoyed a respite in the dollar rally and gasoline futures jumped due to a refinery outage.
West Texas Intermediate crude futures for September delivery on Nymex rose $1.09, or 2.5%, to close at $44.96 a barrel. Earlier on Monday, the contract dropped as far as 43.35, dropping below a six-year settlement low set in March, and had looked on pace to add to its losses from last week, when it fell 6.9%.
Meanwhile, September Brent crude also showed spark, rising $1.80, or 3.7%, to $50.41 a barrel.
Despite the bounce, analysts remained downbeat on oil’s near-term price prospects. Oil was hammered last week as a drop in U.S. crude inventories was offset by a rise in supplies of gasoline and other products and a rise in production.
Also, U.S. rig counts continued to rise while weak Chinese economic data highlight concerns about demand.