Business | Oil & Gas
Oil rises above $136 after slump
Oil rose above $136 a barrel on Thursday, as investors resumed buying after its recent sharp drop and boosted by fresh cuts to Nigerian oil output.
- Reuters
- Published: 00:06 July 18, 2008
London: Oil rose above $136 a barrel on Thursday, as investors resumed buying after its recent sharp drop and boosted by fresh cuts to Nigerian oil output.
US crude rose $1.70 to $136.30 a barrel at 1450 GMT, recovering from lows of $133.02. It slid $4.14 on Wednesday, taking the drop from last Friday's all-time peak of $147.27 to more than $10.
London Brent crude for September was $1.54 up at $137.35.
Traders said oil had been boosted by a combination of short-covering after its recent sharp drop and as a fresh cut to Nigerian output yesterday underscored the risk to supplies.
Italian oil company Eni said it had temporarily shut down production of 47,000 barrels of oil a day in Nigeria because of loss of pressure in pipelines.
Oil had initially looked like continuing its recent tumble, falling by more than $1 on mounting evidence of fading demand in the United States and easing tensions between the US and Iran.
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