Oil prices rebounded in the early trades today, gaining as much as 0.7% at $74 per barrel drifting at a six-week low with dollar getting weaker on the back of raising US economic concerns.
The firmness in the Chinese stock markets also fuelled prices. The US crude for delivery in October rose as much as 48 cents, or 0.7 percent, to $74.30 a barrel on the New York Mercantile Exchange, and was at $74.17 at Singapore, while October ICE Brent gained 36 US cents to $74.62.
The fading concerns of hurricane in the Atlantic region have also helped sentiments remain positive. Despite the forecasts are for the Atlantic hurricane season being the most active in past five years, no threatening storms were in sight during mid-August and mid-October.
According to the US National Hurricane Center, the tropical Storm Danielle formed over the mid-Atlantic on Sunday and could become a hurricane by Tuesday night. But as it headed towards Bermuda, it created no significant threat to the oil and gas infrastructure in the hydrocarbon-rich Gulf of Mexico.
So far, during this year, the crude oil has traded in a range of $64.24-$87.15 range, with recovery in energy demand has been insufficient to absorb supplies.