Brent oil rose from a 13-month low on speculation prices decreased more than justified given supply threats and the ability to ship excess barrels. West Texas Intermediate advanced.
Futures climbed 1.2 percent in London after falling below $103 for a second day. Brent has slipped in the past month as Libyan and West African production has rebounded. Kurdish forces fought to retake positions overrun by Islamic State fighters in northern Iraq as Prime Minister Nouri al-Maliki tried to cling to power. The Energy Information Administration reported that U.S. crude supplies rose last week while fuel stockpiles fell.
“The Brent market is oversold,” Harry Tchilinguirian, the head of commodity markets strategy at BNP Paribas in London, said by phone. “The correction was overdone given that the surplus supplies in the Atlantic basin can be moved to Asia given how much prices have fallen. North Sea maintenance is reducing supply, putting a floor under Brent.”
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