Oil prices rebound after 10 pc plunge
Oil prices rose today on bargain-hunting after slumping 10 per cent a day earlier when US lawmakers rejected a multi-billion-dollar rescue package for ailing American banks, traders said.
By Agencies |
LONDON: Oil prices rose today on bargain-hunting after slumping 10 per cent a day earlier when US lawmakers rejected a multi-billion-dollar rescue package for ailing American banks, traders said.
New York's main contract, light sweet crude for November delivery, climbed USD 1.18 to USD 97.51 a barrel in electronic trading.
London's Brent North Sea crude for November won USD 1.37 to USD 95.39 a barrel.
Prices had nosedived yesterday, driven by worries that further economic turmoil in the United States, the world's largest economy, could significantly dampen global oil demand, traders said.
"I think it sort of blends in with the notion that we are heading for some tough times globally," said Jan Lambregts, regional head of research with Rabobank Global Financial Markets.
"That is one of the reasons why oil prices came off so much overnight... We will see more selling pressure on commodities," he said.
Oil prices rebounded in line with certain stock markets around the globe, which had also tumbled following the bailout rejection.
Crude oil had yesterday plunged 10 per cent in value after the US House of Representatives narrowly rejected a 700-bn-dollar government bailout of the financial sector, throwing markets into a tailspin.
The House of Representatives voted 228-205 to reject the emergency legislation.
Oil "prices were knocked lower when a tentative plan to thaw out the nation's credit markets fell apart," said Mike Fitzpatrick, analyst at MF Global.
New York's main contract, light sweet crude for November delivery, climbed USD 1.18 to USD 97.51 a barrel in electronic trading.
London's Brent North Sea crude for November won USD 1.37 to USD 95.39 a barrel.
Prices had nosedived yesterday, driven by worries that further economic turmoil in the United States, the world's largest economy, could significantly dampen global oil demand, traders said.
"I think it sort of blends in with the notion that we are heading for some tough times globally," said Jan Lambregts, regional head of research with Rabobank Global Financial Markets.
"That is one of the reasons why oil prices came off so much overnight... We will see more selling pressure on commodities," he said.
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Oil prices rebounded in line with certain stock markets around the globe, which had also tumbled following the bailout rejection.
Crude oil had yesterday plunged 10 per cent in value after the US House of Representatives narrowly rejected a 700-bn-dollar government bailout of the financial sector, throwing markets into a tailspin.
The House of Representatives voted 228-205 to reject the emergency legislation.
Oil "prices were knocked lower when a tentative plan to thaw out the nation's credit markets fell apart," said Mike Fitzpatrick, analyst at MF Global.
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