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Brent oil gains $1 to claw back some losses as Libyan exports to resume

Reuters  |  TOKYO 

By Aaron Sheldrick

TOKYO (Reuters) - Brent rose more than $1 on Thursday, recouping some ground after its biggest one-day drop in two years during the previous session after said it would resume exports and U.S.-trade tensions raised demand concerns.

Brent rose $1.23, or 1.7 percent, to $74.63 a barrel by 0544 GMT after slumping 6.9 percent on Wednesday.

U.S. Intermediate (WTI) added 46 cents, or 0.7 percent, to $70.84 a barrel, after falling 5 percent the previous session.

"Markets in are a lot more settled today," said Greg McKenna, at in

"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," he said.

The announcement by Libya's National Corp that four export terminals were being reopened, ending a standoff that had shut down most of Libya's output, was one of the catalysts for a correction, analysts said.

The reopening allows the return of as much as 850,000 barrels per day of into international markets, while an escalating U.S.-trade row has raised concerns about demand.

Oil had some supportive late on Wednesday that U.S. fell by nearly 13 million barrels last week, the most in nearly two years, dropping overall crude stocks to their lowest point since February 2015.

The decline in overall inventories was partially due to a fall-off in stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures, which were down by 2.1 million barrels.

"For WTI there is tightness at Cushing, which will be supportive over July and August," said Virendra Chauhan, at in

Supply to the U.S. market has also been squeezed by the loss of some Canadian

(Reporting by Aaron Sheldrick; Editing by and Christian Schmollinger)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 12 2018. 11:41 IST