By Henning Gloystein
SINGAPORE (Reuters) – Oil prices on Monday clawed back some losses from a nearly 8-percent plunge the previous session, but Brent failed to hold above $60 per barrel amid generally weak financial markets.
Front-month Brent crude oil futures (LCOc1) had risen by 96 cents, or 1.6 percent, to $59.76 per barrel by 0745 GMT.
U.S. West Texas Intermediate (WTI) crude futures (CLc1) were up 62 cents, or 1.2 percent, at $51.04 per barrel.
The gains partly made up for Friday’s selloff, which traders have already dubbed ‘Black Friday’.
Reacting to Friday’s falls in Brent and WTI, China’s Shanghai crude futures on Monday fell by 5 percent, hitting their daily downside-limit.
Judging by exchange data, traders are preparing for more price falls.
Managed short positions in front-month WTI crude futures, which would profit from further price declines, have surged from record lows in July to the highest number of short positions since October 2017.
(GRAPHIC: Price for Brent put options – https://tmsnrt.rs/2R8bJvM)