Oil prices extend recovery to offset heavy losses

Oil prices extended their recovery into Wednesday after absorbing heavy losses at the beginning of the week.

Global benchmarks WTI and Brent Crude added 1.24 per cent and 1.34 per cent respectively.

Read more: Oil prices plummet after Opec+ end deadlock

The rise has helped offset falls resulting from a sharp selloff on Monday which triggered a seven per cent drop in oil prices.

Global stocks suffered their worst day since October on Monday, primarily driven by tumbling oil prices, according to analysts.

The correction “triggered volatility for a lot of retail traders who were already weary of high valuations and concerns over Covid. But traders tend to finish with their moves quickly, not cause prolonged drawdowns,” said George Lagarias, chief economist at Mazars.

The alliance of oil-producing nations, Opec+, reached a deal to increase oil production on Sunday in a move expected to dampen prices.

Read more: Opec+ reach deal to ramp up oil production