Oil prices regained a footing on Thursday from steep falls in the previous two sessions, as investors returned their focus to tight supplies even as fears persisted over the demand outlook amid risks of a global recession, APA reports citing Reuters.
Brent crude futures rose 67 cents, or 0.7%, to $101.36 a barrel by 0402 GMT after tumbling more than $2 to a session low of $98.50 earlier. WTI crude futures climbed 59 cents, or 0.6%, to $99.12 a barrel, bouncing from an intraday low of $96.57.
"Recession fears continue to grow and that obviously does raise some concerns for the demand outlook," Warren Patterson, ING's head of commodity research said.
"However, supportive fundamentals should mean that further downside is relatively limited."
Also, "recent Iranian nuclear talks don’t appear to have achieved much", Patterson said.
He added that it's hard to be overly bearish on oil prices as the Brent monthly spreads remain in wide backwardation, indicating tight supplies. Prompt-month prices are higher than those in future months in a backwardated market.