Oil prices rally as world leaders act to save markets
Oil prices rose sharply on Monday, with New York crude up almost four dollars, after world leaders united to tackle a financial crisis engulfing Europe and the United States.
By Agencies |
LONDON: Oil prices rose sharply on Monday, with New York crude up almost four dollars, after world leaders united to tackle a financial crisis engulfing Europe and the United States.
New York's main contract, light sweet crude for delivery in November jumped 3.61 dollars to 81.31 dollars a barrel, recovering from one-year lows hit Friday.
The contract had plunged 8.89 dollars to 77.70 at the end of last week, in tandem with a global equities meltdown on fears of recession that would crimp demand for energy.
On Monday, London's Brent North Sea crude for November delivery won 3.25 dollars to 77.34 dollars a barrel in morning deals.
Brent had plunged 8.57 dollars Friday to almost half its record high of above 147.50 dollars reached in July, when supply disruptions sent prices soaring.
European governments attacked the financial crisis on several fronts Monday, buying into banks and giving huge new loans in a campaign that brought relief to shell-shocked stock markets.
Share prices in Europe and Asia rose sharply after a summit of European leaders agreed hundreds of billions of dollars of measures to guarantee inter-bank lending and make state funds available to buy banking stocks.
But new stormclouds emerged with the European Union saying that Hungary may need help after its currency slumped last week.
Britain ploughed 37 billion pounds (47 billion euros, 64 billion dollars) into a trio of struggling banks. France, Germany and Italy were to announce national rescue packages later in the day.
Meanwhile on Monday, European central banks moved to free up frozen lending by providing commercial banks with unlimited amounts of dollars in a joint operation that might be reinforced by Japan.
Australia had announced at the weekend its intention to guarantee local bank deposits. The country's central bank also pumped 2.85 billion dollars (1.9 billion US) into the financial system to ease the grinding liquidity crisis.
New York's main contract, light sweet crude for delivery in November jumped 3.61 dollars to 81.31 dollars a barrel, recovering from one-year lows hit Friday.
The contract had plunged 8.89 dollars to 77.70 at the end of last week, in tandem with a global equities meltdown on fears of recession that would crimp demand for energy.
On Monday, London's Brent North Sea crude for November delivery won 3.25 dollars to 77.34 dollars a barrel in morning deals.
Brent had plunged 8.57 dollars Friday to almost half its record high of above 147.50 dollars reached in July, when supply disruptions sent prices soaring.
European governments attacked the financial crisis on several fronts Monday, buying into banks and giving huge new loans in a campaign that brought relief to shell-shocked stock markets.
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Share prices in Europe and Asia rose sharply after a summit of European leaders agreed hundreds of billions of dollars of measures to guarantee inter-bank lending and make state funds available to buy banking stocks.
But new stormclouds emerged with the European Union saying that Hungary may need help after its currency slumped last week.
Britain ploughed 37 billion pounds (47 billion euros, 64 billion dollars) into a trio of struggling banks. France, Germany and Italy were to announce national rescue packages later in the day.
Meanwhile on Monday, European central banks moved to free up frozen lending by providing commercial banks with unlimited amounts of dollars in a joint operation that might be reinforced by Japan.
ADVERTISEMENT
Australia had announced at the weekend its intention to guarantee local bank deposits. The country's central bank also pumped 2.85 billion dollars (1.9 billion US) into the financial system to ease the grinding liquidity crisis.
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