US Oil Recovers From Dip Below $80 On Short-Covering


Oct 27 (Reuters) - U.S. oil prices rebounded after tumbling to a 28-month low below $80 per barrel on Monday as short-covering helped offset earlier losses triggered by Goldman Sachs slashing its price forecasts.

Citing rising production and insufficient demand, Goldman Sachs cut its forecast for Brent to $85 a barrel from $100 for the first quarter of 2015 and reduced its projection for U.S. crude to $75 from $90.

The resulting slide in both Brent and U.S. crude triggered a flurry of short-covering that stemmed losses, as market players who had correctly bet on oil prices falling closed some of their positions.

Weaker-than-expected U.S. pending home sales data at mid-morning also sent the dollar index lower, pepping up dollar-denominated commodity markets across the board.

U.S. crude for December dropped to $79.44 per barrel, its lowest level since June 2012, before recovering to settle down 1 cent on the day at $81.00 per barrel.

Brent for December fell to a low of $84.55 before paring losses to settle down 30 cents on the day at $85.83 per barrel.

The spread between international Brent crude and U.S. crude narrowed to $4.83 per barrel.


View Full Article

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Technical Sales - Industrial Automation & Control Systems
Expertise: Sales
Location: Seattle, WA
Engineering Intern - Tolk Station Job
Expertise: Plant Operations Engineer|Project Management|Student / Recent Grad
Location: Earth, TX
United States Houston: Account Rep, Bus Dev, Sr
Expertise: Business Development|Sales
Location: Houston, TX
search for more jobs

Brent Crude Oil : $49.71/BBL 1.50%
Light Crude Oil : $48.7/BBL 2.05%
Natural Gas : $3.11/MMBtu 12.68%
Updated in last 24 hours