World oil prices higher in Asian trade
Tuesday, 23 September 2008
SINGAPORE, Sept 22 (AFP): World oil prices were higher in Asian trade today as investors reacted to moves by the US to help investment banks Goldman Sachs and Morgan Stanley survive a financial crisis that has shaken global markets, dealers said.
New York's main contract, light sweet crude for October delivery, was 86 cents higher at 105.41 dollars a barrel.
Brent North Sea crude for November delivery rose 1.09 dollars to 100.70 dollars.
The US Federal Reserve said its board had approved "the applications of Goldman Sachs and Morgan Stanley to become bank holding companies" and authorised the Federal Reserve Bank of New York "to extend credit" to the firms.
The extraordinary Sunday announcement places the last two independent Wall Street investment banks under supervision by bank regulators and opens a wider range of credit to the two firms.
It comes after a meltdown on Wall Street that saw the collapse of investment bank Lehman Brothers, the merger of Merrill Lynch with Bank of America, and the government bailout of insurance giant AIG.
The benchmark New York oil futures contract jumped more than six dollars on Friday and Brent rose more than four dollars.
The government plans to buy mortgage-related assets at the root of a global financial crisis.
Oil prices have fallen heavily from record levels above 147 dollars in early July, on worries the global economy is slowing and causing a dent in energy demand.
Traders have been watching developments in key African producer Nigeria where the Movement for the Emancipation of the Niger Delta (MEND), the most prominent armed group in the country's south, declared a ceasefire on Sunday in its week-long "oil war".
The MEND ceasefire came after it claimed a series of attacks targeting Royal Dutch Shell.
Shell confirmed only two of the six attacks claimed by MEND but on Friday declared force majeure on exports from its Bonny terminal, releasing it from contractual delivery obligations.
New York's main contract, light sweet crude for October delivery, was 86 cents higher at 105.41 dollars a barrel.
Brent North Sea crude for November delivery rose 1.09 dollars to 100.70 dollars.
The US Federal Reserve said its board had approved "the applications of Goldman Sachs and Morgan Stanley to become bank holding companies" and authorised the Federal Reserve Bank of New York "to extend credit" to the firms.
The extraordinary Sunday announcement places the last two independent Wall Street investment banks under supervision by bank regulators and opens a wider range of credit to the two firms.
It comes after a meltdown on Wall Street that saw the collapse of investment bank Lehman Brothers, the merger of Merrill Lynch with Bank of America, and the government bailout of insurance giant AIG.
The benchmark New York oil futures contract jumped more than six dollars on Friday and Brent rose more than four dollars.
The government plans to buy mortgage-related assets at the root of a global financial crisis.
Oil prices have fallen heavily from record levels above 147 dollars in early July, on worries the global economy is slowing and causing a dent in energy demand.
Traders have been watching developments in key African producer Nigeria where the Movement for the Emancipation of the Niger Delta (MEND), the most prominent armed group in the country's south, declared a ceasefire on Sunday in its week-long "oil war".
The MEND ceasefire came after it claimed a series of attacks targeting Royal Dutch Shell.
Shell confirmed only two of the six attacks claimed by MEND but on Friday declared force majeure on exports from its Bonny terminal, releasing it from contractual delivery obligations.