Oil bounces, still tentative after 3-day slump

Reuters
Friday July 18th, 2008

Oil prices rose $2 to stand above $131 a barrel on Friday, after a 10 percent decline in the past three trading sessions lured buyers.

Easing tensions between Iran and the West and worries that high prices and a weaker U.S. economy will undermine demand have sent U.S. crude down $15 in just three days, putting it on track for its biggest weekly fall since the contract started trading in New York in 1983.

U.S. light crude rose $2.12 to $131.41 a barrel by 0845 GMT, still way off its June 11 record high of $147.27, as Wednesday’s report of an unexpected build in U.S. crude oil stocks continuing to weigh on the price.

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London Brent crude gained $2.18 to $133.25 a barrel.

“We have seen a significant move lower this week and after last night’s push lower, beware some short covering today,” said Robert Laughlin of MF Global.

Gerard Burg of Australia National Bank in Melbourne added: “The pullback is perceived as an opportunity to buy.”

• A d v e r t i s e m e n t

After mostly bearish headlines through the week, there has been some news helping oil’s recovery.

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