BLBG: Crude Oil Rebounds as Equity Markets Rise on Stimulus Packages
By Grant Smith
Dec. 9 (Bloomberg) -- Crude oil rebounded in New York as stock indexes rose on optimism that stimulus plans will lift economies out of recession.
OPEC officials including group president Chakib Khelil, Libya’s Shokri Ghanem and Qatar’s Abdullah bin Hamad al-Attiyah have said in the past week the group will consider an output cut at its Dec. 17 meeting. Oil built on yesterday’s 7 percent gains as European stocks advanced in tandem with U.S. index futures.
“Risk aversion is falling a bit because of the rescue package,” said Sintje Diek, an analyst with HSH Nordbank in Hamburg. “A cut of 2 million barrels a day, or at least 1.5 million a day, will be an option for OPEC.”
Crude oil for January delivery rose as much as 86 cents, or 2 percent, to $44.57 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It traded at $44.35 at 12:46 p.m. London.
To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net
