Business | Oil & Gas
Oil rises to $56, rebounding from 22-month low
Oil rose near $56 a barrel on Tuesday, rebounding from a near 22-month low on stronger US industrial output data, but fears that the global economic slump was further trimming fuel demand kept a lid on gains.
- Agencies
- Published: 11:31 November 18, 2008
- Image Credit:
Singapore: Oil rose near $56 a barrel on Tuesday, rebounding from a near 22-month low on stronger US industrial output data, but fears that the global economic slump was further trimming fuel demand kept a lid on gains.
US industrial output rebounded by a stronger-than-expected 1.3 percent in October after a downwardly revised September drop that was the biggest fall in more than 62 years, according to a Federal Reserve report.
US light crude for December delivery rose 72 cents to $55.67 a barrel by 0616 GMT, after settling at the lowest level since January 29, 2007 in the previous session.
London Brent crude rose 63 cents to $52.94 a barrel.
US crude has plummetted more than 60 percent from its July record above $147 a barrel as the credit crisis has hit the real economy and limited fuel use in top consumers such as the United States.
The Organization of the Petroleum Exporting Countries cut its 2009 global demand forecast, adding to signs the producer group could cut production further to stem the oil price drop.
OPEC's Secretary General Abdullah Al Badri said it was too early to say whether the producer group needed to cut output when it meets this month in Cairo.
OPEC, source of more than a third of the world's oil, has not yet called a full-blown policy meeting for the Cairo gathering on Nov. 29. Ministers were set to meet informally on the sidelines of an annual gathering of Arab oil ministers.
Since early September OPEC has agreed to remove around 2 million barrels per day from oil markets, and several OPEC members want more cuts. Iran is calling for another 1 million to 1.5 million bpd in output cuts.
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