Oil prices rose by more than $2 a barrel towards $98, rebounding after a near 10% drop in the previous session, as fears of a major meltdown in financial markets eased.
US crude was up $2.64 at $99.01 a barrel this evening, while London Brent crude rose $2.46 to $96.44.
Oil has fallen sharply from record highs above $147 reached in July on signs that high energy prices and the financial crisis have cut into crude demand in the US and other industrialised nations.
In addition, oil has also been dragged down as investors, who had rushed into commodities earlier this year as a hedge against inflation and the weak dollar, sold crude for safer havens.
