Brent crude bounced off of three-month lows on Monday to near $107 a barrel as the potential for renewed supply disruptions put a floor under prices that have been tumbling since the last week of June.
Brent lost $2.01 on Friday to settle at $106.66 a barrel, the lowest finish since April 7. The benchmark lost about 3.6 percent last week, the steepest weekly fall since early January. But the market could see a strong rebound this week amid new and continuing violence in Libya and Iraq, and worries that a final deal may not be reached between Tehran and world powers.
“I’ve been a bear on oil. I still feel bearish but I feel it’s gone too far,” said Jonathan Barratt, chief executive of Sydney commodity research firm Barratt Bulletin.