Skip navigation
Oil Video Gallery
There are constraints in the oil industry's ability to bring more supply online, notes Andrew Reid, CEO of Douglas-Westw...
ExxonMobil's plan to double the size of its petrochemical capacity in Singapore shows how much the world has changed in ...
Asia is where the demand growth for the oil market is, says Daniel Yergin, chairman of IHS Cambridge Energy Research Ass...
Watchlist Sponsored By :
powered by digg
Oil Prices Settle More Than $2 Higher at $131
By: Reuters | 28 May 2008 | 03:31 PM ET
Text Size

Oil rose $2 to more than $131 a barrel Wednesday, rebounding from a sharp drop that had been triggered by concerns about a slowdown in world energy demand.

oil prices, energy, crude oil, brent, oil, dollar, london brent
"The bounce was more technical, with the sell-off a bit too sharp and once again buyers have stepped in to buy the dips," said Addison Armstrong, director of market research at Tradition Energy.

Encouraging buying, Nigerian militants said they planned to carry out a series of car bombings in the oil-producing Niger Delta to mark President Umaru Yar'Adua's first year in office.

U.S. crude [US@CL.1  Loading...      ()] settled up $2.18 to $131.03 a barrel, off lows of $125.96 hit earlier in the session but still well-below the record of $135.09 hit last week.

London Brent crude [GB@IB.1  Loading...      ()] rose $2.63 to $130.93 a barrel.

Oil prices have doubled since last year amid growing concern over supplies that have been squeezed by rapid growth in developing Asian economies and repeated supply disruptions from major producers like Nigeria.

But the market has been knocked off its peak by growing evidence that consumer nations are struggling to cope with the spike—feeding expectations that world energy use could flag in the coming months.

Gasoline demand in Britain in April was running 7 percent below a year ago, while demand for diesel was down nearly 2 percent, according to government figures.

U.S. fuel demand also has lagged amid record pump prices and an economic downturn.

Analysts cited concern that Asian energy demand growth could drop soon as governments in the region cut subsidies.

"There are signs that soaring energy prices are now even starting to cause ripples in the booming Asian economies," said Edward Meir at MF Global.

Smaller Asian oil consumers such as Taiwan, Indonesia and Sri Lanka have all raised domestic fuel prices, and India also is poised for a modest increase.

Soaring fuel costs have triggered a wave of protests around the world.

Convoys of trucks converged on London Tuesday, while in France fishermen blocked road and rail access to the fuel depot of the country's largest oil refinery at Gonfreville, owned by Total.

Oil's rebound came despite a rally in the dollar after a report showed new orders for U.S. consumer goods for April fell less than expected.

The U.S. dollar has maintained a strong negative correlation with commodities markets in recent months, as a weaker dollar strengthens the purchasing power of buyers using other currencies.

Data from the U.S. Energy Information Administration due Thursday is expected to show nationwide crude inventories unchanged, gasoline supplies down slightly and distillate inventories up slightly.

Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • CNBC's Jim Goldman asks: Has the sun begun to set on Twitter? Data suggests its best days are over.
  • Everyone wanted a piece of Madoff's "Bullship"--the famous buoy sold for $7,500 at auction. You won't believe these prices.
  • De Loach Vineyards is selling its pinot noir the old fashioned way, helping to cut energy and transportation costs.
  • Why are the Chinese concerned about the progress of U.S. health care legislation?
  • Snoop Dogg
  • CNBC's Maria Bartiromo talks to rapper Snoop Dogg about brand identity in both business and music.
ADD COMMENTS
Remaining characters


Current DateTime: 04:09:30 16 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 04:09:40 16 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 07:02:14 16 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 04:09:29 16 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters