Futures Movers: Oil rises as bargain hunters snap to attention

Oil prices rose Tuesday as bargain hunters sprung into action on the heels of further weakness that futures to their lowest level since late March.

The near-1% decline on Monday largely reflected recent investor concern about the strength of rebounding U.S. oil production, and ebbing faith that the Organization of Petroleum Exporting Countries can effectively lead the market back into balance after several years of oversupply.

“Until OPEC announces an official decision on whether to extend the production cuts, the main focus of the market will be on that,” said Nelson Wang, an energy analyst at CLSA. He added, as others have said, that failure to deliver an extension that is also agreed to by major non-cartel producers such as Russia could result in a steep price decline.

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