Brent crude prices have increased following Libya’s announcement that it would resume oil exports.
During the previous session, Brent crude suffered its biggest one-day drop in two years.
Brent crude prices soared $1.23, or 1.7%, to reach $74.63 per barrel, while US West Texas Intermediate (WTI) rose 46 cents, or 0.7%, to trade at $70.84, Reuters reported.
AxiTrader chief market strategist Greg McKenna was quoted by the news agency as saying: “Markets in Asia are a lot more settled today.
“Moves, the like of which we saw in Brent and to a lesser extent WTI last night, are often followed by some sort of bounce the following day or session.”
Libya’s National Oil revealed that it is reopening four export terminals after a standoff shut down most of the country’s oil output and affected global supplies.
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The reopening of the export terminals is expected to bring in around 850,000 barrels per day of crude into international markets, bolstering supplies.
However, there are concerns on the demand side with the ongoing trade tensions between the US and China.
Last week, the US crude oil inventories dropped around 13 million barrels, which represents the biggest fall in nearly two years, while overall crude stocks touched their lowest levels since February 2015.
Analysts noted that one of the factors responsible for the decline in overall inventories was a fall-off in stocks at the Cushing, Oklahoma, delivery hub for US crude futures, which dipped by 2.1 million barrels.
Production issues in Canada also hampered supplies to the US market.