Oil hovers rebounds from two-month low as traders eye Opec monthly report

Jessica Morris
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Opec oil output hit a near eight-year high in June (Source: Getty)

Oil pushed away from a two-month low today as supply squeezes threatened to re-emerge.

Brent crude, the global benchmark, jumped 1.82 per cent to $47.09 per barrel this morning. Meanwhile, West Texas Intermediate crude, the US benchmark, swelled 1.52 per cent to $45.44.

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Traders told Reuters that this was due to difficulties loading oil onto tankers at two export terminals in Iraq's south following a pipeline leak.

Investor attention will turn to the Organisation of Petroleum Exporting Countries' (Opec) monthly report due out later today.

It comes after Crude futures tumbled yesterday after it was revealed Opec oil output was close to an eight-year high of 32.73m barrels per day last month.

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This was driven by fragile recoveries in Nigeria and Libya, alongside steady increases for Saudi Arabia and Iran, according to an S&P Global Platts survey.

"If the situation persists, the case for a return to some kind of production cap may gain traction," Eklavya Gupte, senior editor for S&P Global Platts, said.

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