Oil prices are recovering a little from their multi-year lows as markets open in Europe, and oil stocks are seeing some recovery.
At 1 p.m. GMT, WTI crude oil is up 0.35% to $US58.29, after falling below $US57 late on Friday. Brent crude fell below $US61 per barrel at the same time, but is now back up 1.06% to $US62.81.
Here’s how the rise looks, erasing some of the decline seen at the end of last week:
But in the context of the recent fall, it’s a pretty small jump.
The slide is just going on and on, after OPEC, the cartel of oil-trading nations, refused to agree on a cut in production this November. Saudi Arabia, the world’s largest oil producer, still seems pretty relaxed with just letting the price slide.
This weekend, the oil minister of the United Arab Emirates suggested that OPEC would still not increase output even if oil dropped to $US40 per barrel. Here’s the slide since the summer put in context:
Oil stocks are following the climb and leading the FTSE 100 today.
Tullow Oil: +2.45%
BG Group: +0.86%
Royal Dutch Shell: +0.35%
Oil got hammered last week, helping towards the worst week that lots of major equities indices have seen in years, with major energy stocks sinking around the world. It’s looking more positive at the start of this week, but there’s no telling yet how far prices could fall.