(Bloomberg) Oil rose as a selloff in global equities halted and traders assessed the potential for a switch away from gas to oil.Futures in London climbed above $75 a barrel. Wider markets recovered from a selloff on Monday, which also rippled into oil, before this week’s Federal Reserve meeting. Traders are also weighing the impact of the global energy crunch on demand, while Hurricane Ida continues to impact the oil market with some fields in the Gulf of Mexico unable to resume supply until next year.
Oil has resumed its advance over the past month, in part due to a tightening of the market following lingering supply disruptions from U.S. storms. At the same time, consumption is coming into focus in anticipation that soaring natural gas prices will force a shift toward oil.
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“Any macro selloff will continue to provide a buying opportunity for oil, especially with so much pent-up demand out there from the growing gas-to-oil switch,” said Keshav Lohiya, chief executive officer of Oilytics.
Prices
Brent for November deliver gained 1% to $74.65 a barrel by 8:40 a.m. in New York, after rising as high as $75.18
West Texas Intermediate for October, which expires Tuesday, rose 1% to $71.01 a barrel
The more-active November contract added 1% to $70.85
As the Organization of Petroleum Exporting countries continues to lift output, two key members said the group should carry on ramping up supply as planned. The group, led by Saudi Arabia and Russia, will meet on Oct. 4 to review the next monthly increment of 400,000 barrels a day.
Other market news:
Iran’s talks with world powers to revive the 2015 nuclear deal are likely to resume within the next few weeks, Saeed Khatibzadeh, the country’s foreign ministry spokesman, told the state-run Islamic Republic News Agency.
ConocoPhillips agreed to acquire Royal Dutch Shell Plc’s Permian Basin assets for $9.5 billion in cash, accelerating the consolidation of the largest U.S. oil patch.
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