10/12/2018, 7:49 AM (Source:
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Oil jumps 1%, begins rebound from sharp losses

Oil started to recover as prices of the commodity jumped over 1% on Friday. A day earlier, crude prices plummeted over 3%, hitting the lowest level in nearly three weeks amid a global market selloff triggered by concerns over rising interest rates. However, US stock index futures indicate that the markets are set to rebound during today's session.

Meanwhile, crude prices were also supported by a 40% cut in oil production in the Gulf of Mexico as a result of Hurricane Michael which hit Florida earlier in the week as a Category 4 hurricane before weakening to a tropical storm. The storm caused a number of major oil companies to shut down platforms in the gulf, but some firms began returning staff to the area as the hurricane moved inland.

Brent for December delivery climbed 1.12% to sell for $81.18 per barrel at 7:36 am CET and West Texas Intermediate (WTI) for deliveries in November surged 1.10% to go for $71.75 per barrel at 7:35 am CET. However, oil prices were still down over 4% for the week.

Breaking the News / NP