Update: Oil prices bounce higher nearing $100/barrel

Update: Oil prices bounce higher nearing $100/barrel

London: Oil prices rose for a third day running on Friday, nearing $100 dollars a barrel, at the end of an extremely volatile week for financial markets.

New York’s main contract, light sweet crude for delivery in October, won $1.66 to $99.54 dollars a barrel.

London’s Brent North Sea crude for November gained $1.49 dollars to $96.68 dollars a barrel.

Oil prices had on Thursday briefly surged above $102 dollars, as the US currency fell after major central banks offered short-term loans worth billions of dollars to financial institutions struggling to obtain funds amid a global squeeze on credit.

A weak dollar makes oil cheaper for buyers holding stronger foreign currencies. Oil, like gold, is also seen as a haven investment in times of economic turmoil.

Central banks around the world have pumped billions of dollars to credit markets and US authorities are working on a plan to mop up bad debt after previous actions including bailouts failed to restore market confidence, aiding commodities that have been hammered by a flight from risk.