Cruid oil prices rebound ahead of G20 talks

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Cruid oil prices rebound ahead of G20 talks

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World oil prices surged by more than three dollars ahead of Group of 20 talks.

15 October,2011 05:03 am

World oil prices surged by more than three dollars here on Friday, boosted by a weaker dollar and buoyant stock markets before a G20 finance meeting that will seek to address the eurozone crisis.In late afternoon deals, Brent North Sea crude for delivery in November soared $3.07 to $114.18 a barrel, having earlier touched a three-week high at $114.46.New Yorks main contract, light sweet crude for November, leapt $2.28 to $86.51 a barrel.Oil prices have rebounded on the firmer tone in equity markets, boosted by the perception of progress in Europe and firmer US economic data, said CMC Markets analyst Michael Hewson.Crude futures had fallen on Thursday as traders fretted about slowing demand in China, the worlds biggest energy consumer, after official data showed that its trade surplus narrowed for a second straight month.Sentiment was also hit by an unexpected increase in crude reserves in the United States, the largest oil consumer in the world.WTI fell yesterday, on concerns over weakening US fuel demand and slowing crude imports into China, said Westhouse Securities analyst Trish Hart, adding that prices have also rebounded on upbeat US consumer sales data.In foreign exchange deals on Friday, the European single currency leapt as high as $1.3894 on hopes over the G20 gathering. That was the highest level since September 16.A weaker US currency makes dollar-priced crude cheaper for buyers using stronger currencies. This tends to stimulate demand and support higher prices.Oil prices had soared on Monday after German Chancellor Angela Merkel and French President Nicolas Sarkozy, leaders of the eurozones two most powerful economies, agreed to deliver a comprehensive solution within weeks.The market was also boosted by growing hopes that Slovakia would back a beefed-up eurozone bailout fund.