Singapore: World oil prices rebounded in Asian trade on Thursday after plunging over continued fears for the US economy despite an emergency interest rate cut by the Federal Reserve.
The oil market has been dogged by fears in recent weeks that a US-led global economic slowdown could crimp world demand for energy.
In early morning trade, New York’s main contract, light sweet crude for delivery in March, rose 94 cents to $87.93 a barrel.
The contract closed down $2.22 at $86.99 per barrel Wednesday, marking its lowest point in several weeks.
Brent North Sea crude for March delivery rose 88 cents to $87.50 a barrel after settling down $1.83 at $86.62 per barrel in London on Wednesday.
New York oil prices have shed about 12% since striking a record high of $100.09 at the start of January.
In an unexpected move Tuesday, the US Federal Reserve slashed its key interest rate by an unprecedented 75 basis points to 3.50% in an effort to steady US stock markets which have been badly spooked by recession fears.
Oil traders’ attention on Thursday will turn to energy stockpiles in the US, with the US Department of Energy expected to publish its weekly inventory report a day later than normal owing to a public holiday on Monday.