US crude rises $3/bbl on softer dollar

07 October 2008 10:31  [Source: ICIS news]

SINGAPORE (ICIS news)--US crude futures rose more than $3/bbl on Tuesday after sharp falls to eight-month lows the previous day as the dollar eased off highs and hopes were raised of global interest rate cuts.

 

At 9:16 GMT, November NYMEX light sweet crude futures were traded at $89.74/bbl, up $1.93/bbl on Monday’s settlement level, having earlier hit a high of $91.08/bbl, up $3.27/bbl.

 

At the same time, November Brent on London’s ICE Futures was traded at $85.07/bbl, up $1.39/bbl on Monday’s settlement price, having earlier hit a high of $86.43/bbl, up $2.75/bbl.

 

Expectations of a possible plan by leading economies to cut interest rates to boost depressed financial markets were buoyed on Tuesday by news the Australian central bank had reduced interest rates by 100 basis points - the largest such cut in more than 25 years.

 

Crude prices had slumped by more than $6/bbl on Monday as concerns built that the deepening credit crisis would reduce global oil demand. Further pressure on prices was generated by a strengthening in the US dollar, which hit a 13-month high against the euro.

By: James Dennis
+65 6780 4359

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