Oil prices rebound after sharp losses
NEW YORK — Oil prices headed higher Friday after a week of sharp falls, but analysts remained bearish on the prospects for further slow global economic growth.
New York’s benchmark contract, West Texas Intermediate crude for November delivery, rose 47 cents from Thursday to $92.89 a barrel.
In London, Brent North Sea for November ended up $1.39 at $111.42 a barrel.
Analysts saw the upturn as more of a correction from the heavy selling early in the week, when the two contracts sank $7-8 a barrel.
“I wouldn’t get too excited for the WTI bulls, this is just a little deleveraging before the week-end,” said Rich Ilczyszyn of iiTrader.com.
“We’re just a little bit oversold… After an eight dollar drop, you have some profit taking,” he said.
David Bouckhout of TD Securities said talk that Spain could soon firm up a rescue deal to shore up its finances also encouraged buying.
A Financial Times report on Friday said EU authorities were working behind the scenes to prepare the ground for a new rescue program and unlimited bond buying by the European Central Bank for Madrid, which would be unveiled next week.
“Rumors that Spain is looking at bailout options (…) could be good for risk assets,” Bouckhout said.
He also pointed to ongoing tensions in the Middle East, which he said offers “consistent support for the market.”
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