US crude rises $5/bbl on banking rescue plan

19 September 2008 15:32  [Source: ICIS news]

LONDON (ICIS news)--NYMEX light sweet crude futures gained more than $5/bbl on Friday to take the front-month October contract above $103/bbl on reports that the US government was planning to inject more money to support the financial markets.

By 13:50 GMT, October NYMEX crude had hit a high of $103.64/bbl, a gain of $5.76/bbl from the Thursday close of $97.88/bbl, before easing back to around $102.50/bbl.

At the same time, November Brent crude on ICE Futures was trading around $99.50/bbl, having hit a high of $100.50/bbl, a gain of $5.31/bbl from the previous close.

These plans follow Thursday’s move from the Federal Reserve which was reported to have provided $50bn in liquidity to the money markets.

The US government was attempting to restored confidence in the global economy, which market players saw as the main factor driving oil prices down below $100/bbl.

However, oil prices have also been supported by the continued shutdown of production facilities and refineries in the aftermath of Hurricane Ike.

Nigeria production disruptions were also another factor supporting the markets following reports of a resurgence in violence and earlier threats from militants that their attacks could spread to offshore facilities.

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By: Staff Reporter
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