Almost 3% rise for oil prices

Crude oil futures rose nearly 3 percent as investors rebounded from a heavy sell-off in the previous session, shifting their focus back to supply concerns even as recession worries swelled.

Brent futures were up $2.82, or 2.7%, at $105.59 a barrel, while WTI was up $2.46, or 2.4%, at $101.95 a barrel, after closing below $100. for the first time since the end of April.

“Today is something of a reset. There is no doubt that there is short covering and that investors are coming,” said John Kilduff of Again Capital.

The fundamental story about global supply tightness remains. The sell-off was definitely exaggerated, he added.

OPEC Secretary-General Mohammad Barkindo said the industry has been under “siege” due to years of under-investment, adding that shortages could easily ease if extra supplies from Iran and Venezuela are allowed.

Former Russian President Dmitry Medvedev also warned that a proposal by Japan to cap the price of Russian oil to roughly half of current levels would lead to significantly less oil on the market and drive prices above $300-400 the barrel.

On the other hand, the Norwegian government intervened to end an oil industry strike that had reduced oil and gas production, the head of the labor union and the labor ministry said, ending a stalemate that could have worsened the Europe’s energy crisis.

By Saturday, the strike would have reduced daily gas exports by 1,117,000 barrels of oil per day, or 56% of daily gas exports, while 341,000 barrels of oil would have been lost, Norwegian Oil and Gas said.

However, recession concerns have weighed on the market. According to some early estimates, the world’s largest economy may have contracted in the April-June quarter. This would be the second consecutive quarter of recession, considered the definition of a technical recession.