Brent crude oil rose above $86 a barrel yesterday, 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.
Brent for December rose $1.52 to a high of $87.34, before slipping back to around $86.25 a barrel by midday yesterday, but was still on track for its fourth weekly loss in a row.
US November crude, heading for its third weekly decline, was up 55 cents at $83.25.
Developments in Iraq also supported prices, as Islamic State fighters showed their strength despite an extensive air campaign by the United States and other Western and regional powers.
The head of Kuwait’s national oil company on Wednesday said that the oil-rich Gulf country had no plans to cut output, even as prices fell below $83 a barrel.
