Oil prices recouped much of their losses on Monday after moving sharply lower as data suggested inventories at the U.S. crude delivery hub rose in the latest week, compounding worries that troubled emerging markets and trade tensions will dent the outlook for fuel demand.
U.S. light crude ended Monday's session down 43 cents $67.20 a barrel, after hitting a seven-week low at $65.71. Benchmark Brent crude oil were down 20 cents to $72.61 a barrel by 2:29 p.m. ET, after briefly dropping to a nearly four-month low at $71.04.
Prices extended losses after inventories at the Cushing, Oklahoma, delivery hub for WTI rose by about 1.7 million barrels in the week through Aug. 10, traders said, citing data from market intelligence firm Genscape.
Crude inventories at Cushing have been dwindling, in part due to an outage at an oil processing facility in Canada that has reduced the flow of crude into the hub. The Canadian Syncrude processing facility has begun ramping up light oil production and was expected to return to full production in September.
"It is possible that it is the Syncrude return that has added to barrels," said Bob Yawger, director of energy futures at Mizuho.