Brent crude oil bounces back above $101
LONDON—Brent crude oil bounced back above $101 on Wednesday as investors reacted to rebounding global share prices and awaited the release of energy inventory data from the United States.
Brent North Sea crude for delivery in November jumped $1.41 to $101.20 a barrel in London deals.
New York’s main contract, West Texas Intermediate (WTI) light sweet crude for delivery gained $1.91 to $77.58.
Oil markets were buoyed by traders looking for bargains after WTI sank to its lowest level in a year and Brent crude oil tumbled below $100 a barrel on Tuesday on heightened concerns over the eurozone debt debacle.
“Crude oil prices rebounded and rose more than 2 percent, supported by… a strong rebound in the equity markets,” said Sucden brokers analyst Myrto Sokou.
European stock markets rallied sharply on Wednesday after the European Commission said EU nations were building a co-ordinated plan to recapitalize banks to avoid contagion from the eurozone debt crisis.
Prices won further support after industry body American Petroleum Institute said overnight that US oil stocks sank by three million barrels last week.
Later on Wednesday, the US government’s Department of Energy will announce its latest official snapshot of American oil inventories.
Market expectations are for a 700,000-barrel increase in oil reserves for the week ending September 30, according to analysts polled by Dow Jones Newswires.
Gasoline or petrol stockpiles are forecast to climb by one million barrels, while distillates – which include diesel and heating fuel – are seen falling by 100,000 barrels.
