The West Texas Intermediate for June delivery picked up 1.82 U.S. dollars, or 2.55 percent, to settle at 73.16 dollars a barrel on the New York Mercantile Exchange. Brent crude for July delivery grew 1.71 dollars, or 2.27 percent, to settle at 77.01 dollars a barrel on the London ICE Futures Exchange.
The upbeat market sentiment triggered by a resilient U.S. labor market report and rebound of U.S. regional bank shares stayed largely unchanged.
Oil markets continue to rebound as traders bet that the United States will not fall into recession, said Vladimir Zernov, analyst with market information supplier FX Empire.
The recent sell-off was emotional, and it looks that the market has calmed down, added Zernov.
The real reason that oil is bouncing is hope that the regional banking crisis can be contained and may not be systemic, according to Phil Flynn, senior analyst at The Price Futures Group.
"A big rebound in PacWest Bank shares after cutting their dividend and words by Warren Buffett at the 2023 Berkshire Hathaway shareholder meeting, seemed to put the market at ease," said Flynn.
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