Oil recovered from three-month lows to rise by more than $2 today as supply concerns returned after days of pressure from growing evidence of slower fuel demand.
US crude rose $2 to $120.58 a barrel by 2.40pm, after the contract recovered from a three-month-low hit yesterday. London Brent crude climbed $1.95 to $118.95.
Supply concerns came to the fore again, as the Baku-Tbilisi-Ceyhan pipeline with a capacity of one million barrels per day of Azeri light crude remained closed following a fire started by Kurdish separatists.
Despite the recovery, oil is almost 20% off the record of $147.27 a barrel hit on July 11.
