Oil gains 2% as global markets stabilise, $ dips

Oil rose nearly 2 percent on Monday, recovering some of last week’s steep losses as global equities steadied after their largest one-week slide in two years.

Brent crude futures gained 82 cents to $63.61 a barrel, up nearly 2 per cent, while US West Texas Intermediate futures rose by $1 to $60.20. A weaker dollar helped to boost oil by making dollar-priced crude cheaper for holders of other currencies.

European shares took their lead from Friday’s rise on Wall Street, while other commodities including copper and gold also strengthened.

Consumption remains robust, even though rising U.S. crude production has knocked oil off its 2018 highs above $70 and threatened the efforts of the Organization of the Petroleum Exporting Countries to prop up prices by reining in supply. “Demand growth is very strong and, with (ouput) declines in places like Venezuela, is helping the situation. If demand stays strong, it still looks like OPEC will be in control in 2019,” said SEB chief commodities strategist Bjarne Schieldrop.