Oil prices rose by around $3 a barrel this evening, helped by a rebound in world stock markets and further evidence of supply cuts by top exporter Saudi Arabia.
The market had fallen 25% last week, its biggest weekly fall in nearly 18 years, depressed by the grim outlook for the world economy.
US crude was up $3.03 to $43.84 a barrel, having closed on Friday at its lowest since December 2004. London Brent crude rose $2.95 to $42.69.
Oil has plunged more than $100 a barrel from a record peak above $147 in July, as the credit crisis has started to hurt the wider economy and hit demand for fuel. But efforts by governments around the world to halt the slide seemed to reassure investors.
Global markets have taken heart from efforts by US authorities to finalise a rescue for the struggling US car industry, plus more government measures to boost economic activity.
Oil prices rose above $43 a barrel this afternoon, due to a rebound in world stock markets and further evidence of supply cuts by top exporter Saudi Arabia.
The market had fallen 25% last week, its biggest weekly fall in nearly 18 years, depressed by the grim outlook for the world economy.
US crude was up $2.77 to $43.58 a barrel, having closed on Friday at its lowest since December 2004. London Brent crude rose $2.95 to $42.69.
Oil has plunged more than $100 a barrel from a record peak above $147 in July, as the credit crisis has started to hurt the wider economy and hit demand for fuel. But efforts by governments around the world to halt the slide seemed to reassure investors.
Global markets have taken heart from efforts by US authorities to finalise a rescue for the struggling US car industry, plus more government measures to boost economic activity.
Meanwhile, Saudi Arabia has told at least two oil refiners in Asia it will deepen oil supply cuts to as much as 10% of normal volumes in January compared with a 5% cut in December supplies. It also reduced January supplies to some European refiners.
