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Oil edges back in Asia after sharp losses
[SINGAPORE] Oil prices edged up in Asia on Tuesday, a day after retreating on a stronger US dollar, but worries about a global supply glut are keeping gains in check ahead of a key producers' meeting next month.
Both main contracts tumbled Monday after Federal Reserve boss Janet Yellen indicated a possible US rate hike this year, sending the greenback rallying and making crude more expensive for holders of other currencies.
Investors moved in to pick up bargains Tuesday and at about 0715 GMT, US benchmark West Texas Intermediate rose 10 US cents, or 0.21 per cent, to US$47.08, while Brent was four cents, or 0.08 per cent, up at US$49.30.
Attention now turns to the release of US jobs data Friday, which should give an idea about the Fed's plans for rates, before Russia and Opec hold talks in Algeria to discuss the oversupply crisis that has dented prices for years.
"It's probably natural to see some bounce after yesterday's fall," said Bernard Aw, market strategist at IG Markets in Singapore. "As oil approaches the upper end of the US$40-50 range, we need confirmation that oil majors are heading towards an agreement to stabilise the market for oil prices to push higher."
The commodity has rallied in August on hopes Moscow and the Organisation of the Petroleum Exporting Countries will find an agreement to limit production.
But there are lingering worries about the chances of a deal actually being made.
And Jeffrey Halley, senior analyst at currency trading firm Oanda, said: "Spikes above US$48 in WTI and US$50 in Brent crude are still being met by eager sellers, keen to reduce long positions ahead of Friday's event risk."