# Oil climbs almost 3% as recession fears begin to fade Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-05-08 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Oil Climbs 3% as Recession Fears Fade Meta Description: Oil prices surged by almost 3% as U.S. recession worries subside. Get the latest news on the recent rebound and market analysis. URL: https://financedigest.com/oil-climbs-almost-3-as-recession-fears-begin-to-fadehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-05-08t005800z2lynxmpej4700ortroptp4pioneer-natl-rsc-results-1736814053609-compressed.jpg) # Oil climbs almost 3% as recession fears begin to fade By Alex Lawler LONDON (Reuters) – Oil rose almost 3% on Monday as U.S. [recession fears](https://www.financedigest.com/german-industrial-output-slumps-recession-fears-rise.html "German industrial output slumps, recession fears rise") eased and some traders took the view that crude’s recent price slide was overdone with three straight weekly declines for the first time since November. A healthy U.S. jobs report for April helped oil to climb by about 4% on Friday even though labour [market strength could compel the Federal Reserve to keep interest rates higher](https://www.financedigest.com/short-bowel-syndrome-market-higher-growth-rate-forecast-2020-2030.html "Short Bowel Syndrome Market Higher Growth Rate & Forecast 2020 – 2030") for longer. Brent crude was up $1.83, or 2.4%, at $77.13 a barrel by 1200 GMT. U.S. West Texas Intermediate (WTI) [crude gained](https://www.financedigest.com/oil-up-on-lower-u-s-crude-stocks-and-dollar-opec-and-china-concerns-limit-gains.html "Oil up on lower U.S. crude stocks and dollar, OPEC+ and China concerns limit gains") $2.06, or 2.9%, to $73.40. Oil’s rebound follows energy [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks")‘ comeback on Wall Street last Friday after the U.S. reported [strong job data](https://www.financedigest.com/world-shares-rise-u-s-yield-curve-inverts-after-strong-jobs-data.html "World shares rise, U.S. yield curve inverts after strong jobs data"), which eased concerns about an imminent economic recession,” said CMC Markets analyst Tina Teng. Brent had finished last week with a decline of about 5.3% while U.S. crude plunged by 7.1% even after Friday’s rebound. Both benchmarks were down for three [weeks in a row](https://www.financedigest.com/global-equity-funds-attract-inflows-for-second-week-in-a-row.html "Global equity funds attract inflows for second week in a row") for the first time since November. Ole Hansen, head of [commodity strategy](https://www.financedigest.com/investing-in-commodities-as-a-retirement-strategy.html "Investing In Commodities As A Retirement Strategy") at Saxo Bank, said oil’s recent drop looked excessive. An oversold market condition combined with Brent managing to find support ahead of the [March low](https://www.financedigest.com/sterling-struggles-to-pull-away-from-march-2020-low.html "Sterling struggles to pull away from March 2020 low") forced recently established short sellers to seek cover, potentially highlighting that the recent sell-off was overdone,” he said. [Goldman Sachs](https://www.financedigest.com/telefonica-hires-goldman-sachs-to-sell-uk-mobile-masts-stake-el-confidencial-says.html "Telefonica hires Goldman Sachs to sell UK mobile masts stake, El Confidencial says") analysts on Saturday said that concerns over near-term demand and elevated supplies were “overblown. A [round of voluntary output cuts](https://www.financedigest.com/meta-to-cut-10000-jobs-in-second-round-of-layoffs.html "Meta to cut 10,000 jobs in second round of layoffs") by some members of the Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, begin this month and the group holds its next meeting on June 4. Before then, U.S. [consumer price inflation](https://www.financedigest.com/u-s-inflation-outlook-brightens-as-import-prices-fall-consumer-sentiment-rises.html "U.S. inflation outlook brightens as import prices fall, consumer sentiment rises") figures for April will be in focus on Wednesday, potentially influencing the Fed’s stance on future interest rate decisions. OPEC’s latest monthly [oil market report](https://www.financedigest.com/rebound-in-the-oil-gas-exploration-and-production-activities-to-boost-mobile-servicing-rig-market-fact-mr-report.html "Rebound In the Oil & Gas Exploration and Production Activities to Boost Mobile Servicing Rig Market, Fact.MR Report") is due on Thursday, providing an updated reading on the demand and supply outlook. (Reporting by Alex Lawler; Additional reporting by Sudarshan Varadhan; Editing by David Goodman) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---