Brent crude oil rose above $86 a barrel on Friday, bouncing from near four-year lows as investors bought back into a market they said was oversold, and as fighting in Iraq increased political risk.
Oil has lost more than a fifth of its value since June on heavy oversupply, signs of weak demand growth and indications that key oil producers, particularly Saudi Arabia, have a limited appetite to intervene on prices.
“Prices have likely overshot to the downside,” said Jeffrey Currie, head of oil analysis at Goldman Sachs. “This leaves us near-term constructive despite being bearish as we look further out.”
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