Crude Oil Rebounds From a Two-Day Decline


Crude oil rebounded from its biggest two-day decline in almost four years after the Federal Reserve agreed to rescue American International Group Inc., easing concerns of a further economic slowdown in the U.S.

Oil also recovered before a U.S. government report forecast to show that Hurricanes Gustav and Ike caused crude stockpiles to fall a fourth week, while rebel raids against oil facilities in Nigeria entered a fifth day. Goldman Sachs Group Inc. cut its three-month forecast for crude oil to $115 a barrel from $149, citing the global credit crisis and demand weakness.

Crude futures declined more than $10 a barrel in the first two days of the week on concern financial market disruptions may weaken the global economy and cut fuel consumption.

Prices have dropped 2.2 percent this year and declined 36 percent from the record $147.27 a barrel reached on July 11.


TradingEconomics.com, Bloomberg.com
9/17/2008 5:22:59 AM