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Oil rebounds in Asia as concerns of US recession fade

Oil rebounds in Asia as concerns of US recession fade
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First Published: Fri, Jan 11 2008. 11 55 AM IST
Updated: Fri, Jan 11 2008. 11 55 AM IST
AFP
Singapore: Oil prices rebounded in Asian trade on 11 January after heavy drops on worries of a US recession that could dampen global demand for crude, dealers said.
In morning trade, New York’s main contract, light sweet crude for delivery in February, rose 76 cents to $94.47 a barrel. The contract slid by $1.96 to settle at $93.71 in New York the previous day.
Brent North Sea crude for February gained 76 cents to $92.98.
Despite the rise, traders remain worried that a recession in the United States could slash demand from the world’s biggest energy consuming nation.
The US economy, the biggest in the world, is also a major buyer of global exports and any slowdown could affect other economies as well.
US Federal Reserve chairman Ben Bernanke had said on 10 January that the outlook for US growth in 2008 had “worsened” because of the housing meltdown, rising oil prices and weakened stock markets.
He said “additional monetary easing may be necessary,” suggesting the central bank will cut interest rates by more than expected at a policy meeting scheduled for 29-30 January.
Last week, crude prices topped $100 a barrel, partly buoyed by reports of falling US crude supply and political tensions in nuclear-armed Pakistan.
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First Published: Fri, Jan 11 2008. 11 55 AM IST