U.S. crude oil prices bounced above $100/bbl on Monday, and could be poised to finish at that key level in a week, as tight oil supplies and the dollar pulling back from multiyear highs outweigh concerns about recession and COVID-19 lockdowns in China.
WTI August crude ( CL1:COM ) +4.5% to $102.05/bbl and September Brent crude ( CO1:COM ) +4.6% to $105.81/bbl.
Energy stocks ( NYSEARCA: XLE ), leading all S&P sectors in the day's trading, are led by Hess ( NYSE: HES ) +5.5% ,
ETFs: ( NYSEARCA: USO ), ( UCO ), ( SCO ), ( USL ), ( DBO ), ( USOI ), ( NRGU ), ( OILK ), ( OLEM )
Both Brent and WTI last week recorded sharp weekly declines on fears a recession would hurt oil demand, but several analysts noted that oil supplies remained tight , and President Biden's trip to Saudi Arabia failed to bring any pledge to boost oil supply .
Meanwhile, U.S. natural gas futures ( NG1:COM ) jumped to four-week highs , +7.1% to $7.52/MMBTu, on forecasts for hotter weather and more demand this week than previously expected.
Stifel analysts today predicted a global economic slowdown would continue to pressure commodities, with crude oil sliding to $75-$80 by Q3 .
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U.S. crude reclaims $100/bbl as buyers take advantage of last week's selloff