Brent crude rose from a nine-month low and West Texas Intermediate advanced for the second time in six days, on speculation that losses were exaggerated.
The European benchmark climbed as much as 1.6 percent, reversing an earlier loss of 1 percent. WTI also added as much as 1.6 percent. Brent’s 14-day relative strength index was at 28.1, a sign prices may have fallen too far. European shares rose after the biggest four-day selloff since July as Italian and Spanish bonds rallied. Brent may slip to a range of $90 to $100, according to Bank of America Corp.
“We do not believe that the timing is there just yet for Brent prices to drop sustainably below $100,” said Torbjoern Kjus, a senior oil analyst at DNB ASA in Oslo.
Brent for June settlement on the London-based ICE Futures Europe exchange increased as much as $1.58 to $99.27 a barrel, and traded for $98.87 at 12:59 p.m. local time. Brent settled at $97.69 yesterday, the lowest close since July 2, after dropping below $100 a barrel this week for the first time in more than eight months. The volume of all futures traded today was 39 percent higher than the 100-day average.
WTI for May delivery was at $87.87 a barrel, up $1.19, in electronic trading on the New York Mercantile Exchange after falling earlier as much as $1.07 to $85.61. It slid 2.3 percent to $86.68 yesterday, the lowest closing price since Dec. 13. The volume of all futures traded was 63 percent larger than the 100- day average.