TOKYO: Oil prices climbed for the first time in three days on Wednesday, rising around 1 per cent as stock markets clawed back some of the losses they racked up this month.
Brent crude futures had gained 83 cents, or 1.1 per cent, to $76.74 a barrel by 07:46 GMT. They fell 1.8 per cent on Tuesday, at one point touching their lowest since August 24 at $75.09 a barrel.
US West Texas Intermediate (WTI) crude futures advanced 55 cents, or 0.9 per cent, to $66.73 a barrel on Wednesday. They dropped 1.3 per cent the day before, after hitting their lowest since August 17 at $65.33 a barrel.
Traders said oil received some support from stock markets, which pulled back from 20-month lows on Wednesday amid pledges by China to support its markets.
Analysts said oil prices were also supported by the upcoming US sanctions against Iran’s crude exports that will start on November 4.
Imports of Iranian crude oil by major buyers in Asia hit a 32-month low in September, as China, South Korea and Japan sharply cut their purchases ahead of the sanctions on Tehran, government and ship-tracking data showed.
“The bullish argument for crude still centres on Iran sanctions which are due to begin in November and continued output declines from Venezuela,” said William O’Loughlin, investment analyst at Australia’s Rivkin Securities.
Despite this, Brent remains 12 per cent below its $86.74 October high, and crude is on track to post its worst monthly performance since July 2016. — Reuters
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