Brent crude bounced back above $100
in Asia on Wednesday as traders went bargain-hunting after oil prices fell
sharply overnight due to forecasts of a drop in US stockpiles, analysts said.
New York's main contract, West Texas Intermediate (WTI) light
sweet crude for delivery in November, was up $2.16 to $77.83 per barrel in the
afternoon.
Brent North Sea crude for November delivery gained $1.83 to
$101.62.
Oil markets were buoyed by traders looking for bargains after
WTI crude sank to its lowest level in a year and Brent crude tumbled below $100
per barrel in late US trade on Tuesday, analysts said.
Brent crude had not fallen below the $100-mark since early
February.
"Bargain hunters have come to the market and this will
provide necessary support to the markets," said Ker Chung Yang, commodity
analyst for Phillip Futures in Singapore.
He added that crude prices were also given a slight boost
from forecasts released by the American Petroleum Institute on Tuesday of a 3.1
million drawdown in crude inventories in the world's largest oil consumer.
Such drawdowns indicate stronger energy demand and support
prices.
Crude markets have been pummelled by the ongoing eurozone
debt crisis as well as the moribund US economy, with comments by Federal
Reserve chief Ben Bernanke on Tuesday adding to the gloom.
Bernanke told legislators their budget-cutting fervour could
threaten an already "faltering" recovery.
Source : AFP
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