Oil steadies after slide

LONDON – Oil steadied yesterday after the previous session’s near five per cent slide, supported by a rebound in equity markets and expectations for a fifth weekly drop in US crude inventories.

The supply and demand picture remained healthy, some analysts said, a day after crude posted its biggest percentage loss since January 4 as concern about the US economy hit financial and commodity markets. “We do not see the recent price moves as indicative of any need for a reassessment of oil-market fundamentals, but rather a healthy correction,” said Kevin Norrish of Barclays Capital.”The move up to almost US$80 was overdoing it.”US crude rose two cents to US$72,08 a barrel by 13h13 GMT.It hit an all-time high of US$78,77 on Aug 1.Brent crude gained 19 cents to US$71,36.Sentiment was also stronger in other markets.European shares advanced 0,9 per cent and copper rallied amid speculation that the US Federal Reserve could act to reassure investors with an interest rate cut.Nampa-Reuters”We do not see the recent price moves as indicative of any need for a reassessment of oil-market fundamentals, but rather a healthy correction,” said Kevin Norrish of Barclays Capital.”The move up to almost US$80 was overdoing it.”US crude rose two cents to US$72,08 a barrel by 13h13 GMT.It hit an all-time high of US$78,77 on Aug 1.Brent crude gained 19 cents to US$71,36.Sentiment was also stronger in other markets.European shares advanced 0,9 per cent and copper rallied amid speculation that the US Federal Reserve could act to reassure investors with an interest rate cut.Nampa-Reuters