September crude oil managed to recover from an overnight deficit, fueled by a rally in world equity markets and a weaker US dollar. There also seemed to be a sense that sentiment in the oil market might have outpaced fundamentals to the downside, and that leaves the market vulnerable to an upside correction. Global risk appetites gained momentum on news of a short-selling ban on selected securities in a number of European countries. Some traders suggested that this could inspire more upside on stocks, fuel risk appetites and provide added support to September crude oil prices.
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