Brent off lowest levels of the week but the rebound is not convincing

An update here yesterday afternoon noted how oil prices were continuing to press lower. One element of that update also noted the potential driver behind this being producers hedging future production, after what has been a more than $10 rally off the lows over the past couple of weeks. Well, since then prices have slipped back further. Brent for December delivery settled $3.75 lower on the NYMEX exchange, at $77.18 yesterday evening, but that was after it had fallen below $76.50 ahead of the wider European close. It has rebounded a bit more today though, but as to how much further that will run surely depends on the news emerging from the Middle East today. That news flow is pretty benign right now, but that can soon change. Brent for December delivery is currently trading at $77.55