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

Weak Demand

Concerns about weak global demand and booming supply continued to overshadow the market.

The Ifo, a key index of German business sentiment fell to its lowest level in two years on Monday, adding to concerns about weak demand and the risk Europe could slip into recession.

In the United States, for the first time since January, crude futures look poised to flip into contango, a structure in which prompt prices are below longer-dated contracts, typically signalling a weaker market.

Global oil supply remains high despite disruption in producers such as Iraq and Libya.

Yemen resumed exports from its main oil pipeline on Saturday, a day after an attack by tribesmen temporarily halted flows, industry sources said.

(Additional reporting by Christopher Johnson in London and Osamu Tsukimori in Tokyo; Editing by Marguerita Choy, Gunna Dickson and Chris Reese)

Copyright 2014 Thomson Reuters.


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