Oil rebounds by more than two per cent

23 September 2009

Oil prices bounced back from losses earlier in the week to record a rise of more than two per cent on Tuesday, buoyed by a fall in the value of the dollar.

US crude for October delivery settled at $71.55 (£43.78) a barrel, up $1.84 from the previous day, while London Brent crude also traded up $1.84 to close at $70.53.

The gains came as the US dollar fell to a fresh one-year low against the euro, increasing the appeal of oil and other commodities to foreign buyers.

Meanwhile, another day of gains on the stock markets and expectations of a further drop in US crude inventories also offered support for prices.

The increases helped wiped out part of Monday's losses, which saw oil prices fall by more than three per cent to end below $70 a barrel as signs of weak fuel demand pushed values down.

Earlier this week, Christophe de Margerie, head of French energy firm Total, told the BBC that prices could rose to more than $100 a barrel in the future as supply struggles to keep up with the likely upturn in demand once the economy recovers.

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