FX.co ★ Oil Futures Reverse Losses, Settle Modestly Higher

Crude oil futures rebounded from early losses and settled modestly higher on Monday as concerns about global supplies outweighed demand worries.

Oil prices fell earlier in the day as a surge in coronavirus cases in China raised concerns about the outlook for energy demand. A soaring dollar amid rising prospects of the Federal Reserve announcing a sharper rate hike weighed as well on oil prices.

West Texas Intermediate Crude oil futures for July ended higher by $0.26 or about 0.2% at $120.93 a barrel, recovering from a low of $117.47 a barrel.

Brent crude futures fell to a low of $118.96 a barrel before rallying to $123.59. The contract pared gains subsequently and was trading at $121.81 a barrel a little while ago.

The Organization of the Petroleum Exporting Countries and its allies are reportedly struggling to deliver on agreed output increases, raising concerns about global oil supply. Also, the sanctions on Russia and the ongoing unrest in Libya have resulted in a significant drop in supply levels.