Oil prices creep higher as recession fears begin to fade

Oil prices rose slightly on Monday as traders remained cautious despite receding fears of a recession in the U.S., which drove prices down for three straight weeks for the first time since November.

Brent crude futures were up 11 cents, or 0.2%, at $75.41 a barrel at 0252 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 12 cents, also 0.2%, at $71.46.

“Oil’s rebound follows energy stocks’ comeback on Wall Street last Friday after the U.S. reported strong job data, which eased concerns about an imminent economic recession that led to the selloff early in the week,” said Tina Teng, an analyst at CMC Markets.

Fears that the U.S. banking crisis will slow the economy and sap fuel demand in the world’s biggest oil consuming nation drove the Brent benchmark down 5.3% last week, while WTI plunged 7.1%.

However a healthy U.S. jobs report for April, a weaker dollar, and expectations of supply cuts at the next meeting of the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, in June, helped the benchmarks rebound about 4% each on Friday.

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