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Oil prices rebounded in Asia today on bargain-hunting after falling to multi-month lows due to a surge in the US dollar and weak global manufacturing data, analysts said.
US benchmark West Texas Intermediate (WTI) crude for October delivery rose 39 cents to $93.27, while Brent crude for October delivery gained 37 cents to $100.71 in late-morning trade.
WTI crude fell $3.08 to $92.88 in New York trade, its lowest level since January, while Brent crude sank $2.45 in London to $100.34. It had gotten as low as $100.17, its lowest level since May 2013.
“The oil market is recovering after the surge in the US dollar put a downspin on commodity prices, including crude oil,” David Lennox, resource analyst at Fat Prophets in Sydney, told AFP.
The US dollar bought 105.20 yen in Asia today, compared with 104.06 yen on Friday before the long week-end in the US.
US markets were shut on Monday due to the Labor Day public holiday.
A stronger greenback makes dollar-priced oil and commodities more expensive for buyers using weaker currencies, denting demand and pushing the prices lower.
Lennox said oil prices were also under pressure after weak Chinese and European manufacturing data released this week raised concerns about a slowdown in global energy demand.
Investors will next be scrutinising the latest official US petroleum stockpiles report for trading cues, he added.
The US Energy Information Administration will release the report a day later than usual tomorrow instead of today due to the public holiday on Monday.
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