ARTICLE SERVICES            Reprint this article     Print this article       Send as an e-mail     Send Feedback       Post a comment       RELATED STORIES   Foreign reserves slip to $36.69B in Sept Arroyo orders plan to cushion recession Rupiah rallies, won plunges to new lows China wants new global monetary system Solons caution gov’t on privatization More Stories » Business Aim to retire with no debts PLDT taps Meralco for new venture Corporate war comes to Philex RCBC bent on expansion EDC to raise P18B more April exports fall 35.2% on year Wall Street crook to earn pennies Piltel transforms into holding firm Plan your fun-spending this summer Money lessons you won't learn in class Business GMA 7 expanding overseas New mobile network offers lowest call rate Thrift bank up for sale BSP wants cover for forex losses S&P affirms RP ratings, stable outlook Focus backs out of Tindalo venture Mobile money exchange scheme launched QC judge told issue arrest order vs PBA cager MetroPac heats up race for SCTEx Hope for the farmers in 2010 Banks still get to boost lending BSP ready to act to counter downturn   Business Most Read RSS Jayceekay Stationers & Engravers Look for: Caroline L. Paspe Tel. No.: 817.6384 or 817.6786 Wally Gonzales Photography Look for: Arlene Lacea Tel.No.: 890.5524 or 890.1318 Mobile: 0917.8492559

SINGAPORE – (UPDATE) Crude oil prices rebounded to more than $90 a barrel in Asia Tuesday but dealers said the underlying trend is lower after deepening global financial turmoil and falling stocks further raised fears of slowing energy demand.

In late afternoon trade, New York's main contract, light sweet crude for November delivery, rose $3.25 to $91.06 after a plunge of $6.07 to $87.81 at the close of floor trading on Monday at the New York Mercantile Exchange.

Brent North Sea crude for delivery in November rose $2.31 to $85.99 from a fall of $6.57 to $83.68 Monday in London.

"Today, some correction can be seen," said Ken Hasegawa, manager of the energy desk at Newedge Japan brokerage in Tokyo.

He said the benchmark New York oil contract was moving in line with the Dow Jones Industrial Average, which fell as much as 800 points during Monday's session but regained some ground very late in the day.

There was also a recovery on Asia-Pacific and European stock markets on Tuesday.

Some short covering also helped boost oil prices, Hasegawa said. Short covering occurs when traders, who have sold more than they own in hopes that prices will fall, buy up the contracts as the market starts turning higher.

Oil futures contracts skidded along with global stock markets after a $700-billion US government financial rescue package failed to calm investor nerves about frozen global credit flows, dealers said.

World oil prices first broke through the $100-level at the start of the year and touched record highs above $147 in July.

But they have fallen sharply since then on accelerating concerns that demand is slowing as a result of the global financial turmoil.

While a short-term recovery could see New York crude futures bouncing back to $95, Hasegawa said the mood remains bearish and the price could fall to $75 before yearend.

"Oil is not the best hedge against a market meltdown and China and India (demand) will slow," said Phil Flynn at Alaron Trading.

"The contagion is spreading. China will not be importing gasoline in October, for the second successive month as domestic stockpiles mount," said John Kilduff at MF Global.

China and other major emerging economies are key drivers of global energy demand, which is waning under pressure from the worldwide financial crisis that began 14 months ago with a slump in the US housing sector.

Hasegawa said investor funds that are flowing out of commodities have also pulled prices down.

• Foreign reserves slip to $36.69B in Sept
• Arroyo orders plan to cushion recession
• Rupiah rallies, won plunges to new lows

• China wants new global monetary system
• Solons caution gov’t on privatization