Oil bounces after 3-day slump
Saturday, 19 July 2008
LONDON, July 18 (Reuters): Oil prices rose above $130 a barrel Friday, after a 10 percent decline in the past three trading sessions lured buyers.
Easing tensions between Iran and the West and worries that high prices and a weaker U.S. economy will undermine demand have sent U.S. crude down $15 in just three days, putting it on track for its biggest weekly fall since the contract started trading in New York in 1983.
U.S. light crude rose $2.75 to as high as $132.02 a barrel and it was trading at $131.08 by 7:45 a.m. EDT. Still, the price levels were way off its June 11 record high of $147.27.
London Brent crude was trading $1.81 up at 132.88.
"We have seen a significant move lower this week and after last night's push lower, beware some short covering today," said Robert Laughlin of MF Global.
Limited support also came from oil producers Brazil and Nigeria.
Easing tensions between Iran and the West and worries that high prices and a weaker U.S. economy will undermine demand have sent U.S. crude down $15 in just three days, putting it on track for its biggest weekly fall since the contract started trading in New York in 1983.
U.S. light crude rose $2.75 to as high as $132.02 a barrel and it was trading at $131.08 by 7:45 a.m. EDT. Still, the price levels were way off its June 11 record high of $147.27.
London Brent crude was trading $1.81 up at 132.88.
"We have seen a significant move lower this week and after last night's push lower, beware some short covering today," said Robert Laughlin of MF Global.
Limited support also came from oil producers Brazil and Nigeria.