Brent's rebound falters on supply-side fears

Brent bulls were deterred at the psychological $75 level this week.

Supply-side fears have overpowered the optimism earlier in the week, with bulls taking little comfort from:

• China’s announcement for incoming economic stimulus
   
• Supply risks stemming from Hurricane Helene
   
• Larger-than-expected drop in US crude stockpiles

Instead, oil benchmarks have been dragged back down by the thought of more incoming supplies out of Saudi Arabia and Libya.

For oil prices to see a sustained price recovery, markets need to be shown stronger evidence that the global economy is resilient enough to absorb incoming supplies.