On Monday, Crude oil futures rose, although concerns about the long-term outlook for demand dragged on prices.
Crude markets were also supported in the wake of data that showed South Korea did not import any oil from Iran in September for the first time in six years before US sanctions against the Middle Eastern country take effect in November.
Brent crude had risen $1.01, or 1.26 %, to 81.44 a barrel by 0424 GMT, on track for its biggest daily gain since Oct. 9.
US crude futures plunged 80 cents, or 1.12 %, to $72.14 a barrel, on Friday, extending rises they racked up after hefty losses on Wednesday and Thursday.
“The market has again expressed concerns over geopolitical tensions in the Middle East after U.S. and Saudi traded comments over the disappearance of the Saudi journalist, leading to a jump in prices,” Wang Xiao, head of crude research with Guotai Junan Futures, wrote in a research note.
In September, South Korea stopped importing Iranian oil for the first time in years.
“South Korea’s move to stop Iran oil imports is giving the market confidence on prices”.
Lingering geopolitical worries, trade concerns and a weaker economic outlook may reason for another week of volatile trading. While Monday’s recovery in prices is fragile.
Putting downward pressure on oil prices, the International Energy Agency, the West’s energy watchdog, said in its monthly report that the market looked “adequately supplied for now” and trimmed its forecasts for world oil demand growth this year and next.
Last week, that comes after the secretary general of the Organization of the Petroleum Exporting Countries (OPEC) said the group sees the oil market as well supplied and that it was wary of creating a glut next year.
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