Crude rises $1/bbl on hopes of bailout backing

01 October 2008 08:55  [Source: ICIS news]

SINGAPORE (ICIS news)--Crude futures climbed more than $1/bbl on Wednesday, on hopes that the US Senate will vote in favour of the $700bn (€497bn) rescue package for the financial sector which could prevent the world’s biggest economy sliding into a deep recession.

At 7:00 GMT on Wednesday, November NYMEX light sweet crude futures were trading at $101.24/bbl, up 60 cents/bbl on Tuesday’s settlement level, having earlier hit a high of $102.24/bbl up $1.60/bbl.

At the same time, November ICE Brent futures were trading at $98.64/bbl, up 47 cents/bbl on Tuesday’s settlement price, having earlier hitting a high of $99.54/bbl up $1.37/bbl.

The senate is set to vote on a revised version of the $700bn bailout for the financial sector later on Wednesday.

Oil prices have continued to firm after plummeting close to 10% on Monday amid heightened fears in the financial markets after the US government’s initial bailout plan failed to gain congressional approval.

Weekly US supply data due out later on Wednesday are expected to reveal a build in crude stocks of more than 2m bbls and a jump in refinery operating rates. However, stocks of distillates and gasoline were expected to decline by more than 1m bbls.

($1 = €0.71)

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By: James Dennis
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