Oil prices jump to pare back worst weekly losses for nine months

Oil prices jumped today to partly reverse losses registered last week that saw the main international benchmarks swing to their worst seven day performance in nine months.

International benchmarks WTI and Brent Crude rose 3.22 per cent and 3.27 per cent to $64.14 and $67.31 respectively.

Both benchmarks marked their biggest week of losses in more than nine months last week, with Brent sliding about 8 per cent and WTI about 9 per cent.

The gains were mainly driven by souring investor sentiment triggered by concerns that the rapid spread of the more transmissible Delta variant of Covid could temper oil demand partly receding.

A depreciating dollar has also fed into higher demand for oil. A weaker dollar makes crude less expensive, which typically stokes oil consumption.

Chiyoki Chen, chief analyst at Sunward Trading, said: “A softer dollar prompted investors to rewind their positions.”