Crude oil prices rose strongly on Monday after a sharp sell-off in the previous week, as investors appeared to seeking bargains at lower price levels.
Brent crude, the global oil benchmark, lost nearly 10% in six-consecutive days of losses between Friday, 2 February and Friday, 9 February, falling below $62 a barrel after rising above $70 a barrel for the first time in three years in late January.
Nymex West Texas Intermediate, the US benchmark oil price, fell more than 10% - also over six-straight sessions - dipping below $60 a barrel on Friday - as heavy losses on global stock markets led to widespread risk aversion.
There were signs, however - even as oil prices were sinking on Friday - that a recovery was coming. Certainly institutional investors appeared to be banking on a recovery as net long positions - those speculating on a rise in prices - increased during last week.
Weekly speculative positioning data from the Commodity Futures Trading Commission published late on Friday, showed that net long positions - total long positions minus total short positions - increased to 739,100 contracts from 734,600 in the previous week.
Warren Patterson, commodities strategist at ING warned, however, that the data published on the coming Friday could prove worse.
"Much of the price weakness was seen following the last reporting week, and so this week’s release should show a large decrease in the net long position," he said.
Oversupply concerns could also come to dominate in the days ahead. Rig count data from Baker Hughes showed a significant increase in US drilling last week.
Active drilling rigs increased by 26 to a total 791 last week - the biggest weekly increase in 13 months and the highest total rig count since April 2015.
By late morning in London, the price of Brent crude was up 1.72% to $63.86 a barrel, while Nymex WTI climbed 1.87% to $60.30 a barrel.