On Monday, oil prices surged almost 3% following three consecutive weeks of declines, as concerns of a U.S. recession subsided and traders believed that the recent price drop was excessive. The price hike was also supported by the healthy U.S. jobs report for April, which showed a resilient labour market despite fears of higher interest rates. Brent crude climbed 2.7%, or $2.05, to $77.35 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 2.9%, or $2.05, to $73.39 per barrel.

“Oil’s recovery comes after the resurgence of energy stocks on Wall Street last Friday, following the U.S. job data report that eased concerns about a looming economic recession,” explained CMC Markets analyst Tina Teng. According to Ole Hansen, the head of commodity strategy at Saxo Bank, the recent drop in oil prices was excessive and did not reflect the actual state of the market.