Crude rises $2/bbl on bank rescue plan rebound

14 October 2008 09:05  [Source: ICIS news]

SINGAPORE (ICIS news)--Crude futures gained a further $2/bbl on Tuesday, buoyed by the early success of concerted moves by leading economies to rescue banks and restore stability to battered financial markets.

 

At 07:25 GMT, November NYMEX light sweet crude futures were trading at $83.72/bbl, up $2.53/bbl on Monday’s settlement level, having earlier hit a high of $83.77/bbl, up $2.58/bbl.

 

At the same time, November Brent on London’s ICE was trading at $79.72/bbl, up $2.26/bbl on Monday’s settlement price, having earlier hit a high of $79.80/bbl, up $2.34/bbl.

 

Tuesday’s rally follows a 4% gain in crude prices the previous day. It also comes after sharp falls last week when crude values slumped to their lowest levels in over a year on fears that a global economic recession would lower oil demand.

 

Meanwhile on Monday Goldman Sachs, which had been one of the most bullish oil price forecasters, substantially lowered its year-end forecast for US crude oil to $70/bbl. Previously Goldman Sachs had forecast the year-end price at $115/bbl.

 

In its monthly report released on Friday, the International Energy Agency (IEA) cut its oil demand forecasts for 2008 and 2009 by 240,000 bbl/day and 440,000 bbl/day, respectively, given weaker OECD deliveries and the International Monetary Fund’s (IMF) downward revisions to 2009 global gross domestic product (GDP) assumptions.

  

To discuss how the financial crisis is affecting the chemicals industry visit this thread on ICIS connect

 

By: James Dennis
+65 6780 4359

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