Oil rose from a six-week low in New York as investors speculated the biggest weekly drop in almost two months is exaggerated, while central bankers from the Group of 20 pledged to address risks to the global economy. Futures climbed as much as 1.6 percent after plunging 6.3 percent yesterday and dipping below $80 earlier today. Finance chiefs from the Group of 20 nations said they would address “heightened downside risks” from sovereign debt and slowing growth. Prices may fall next week on concern economic growth will slow in the U.S. and China, a Bloomberg News survey shows. “Markets sold off very aggressively yesterday,” said Mark Thomas, head of energy futures at Marex Group Ltd. in London. “That selling has run its course for the moment.” Crude oil for November delivery climbed as much as $1.30 to $81.81 a barrel in electronic trading on the New York Mercantile Exchange and was at $81.42 at 9:22 a.m. London time. The contract yesterday dropped $5.41 to $80.51, the lowest settlement since Aug 9. Prices are down 7.4 percent this week. Brent oil for November settlement gained $1.28, or 1.2 percent, to $106.77 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract was at premium of $25.32 to U.S. futures, compared with a record $26.87 on Sept. 6, based on November settlement prices. Fallen Too Far Oil in New York rebounded as a technical indicator signaled futures may have fallen too far. Crude dropped below its lower Bollinger Band for the first time in more than six weeks, according to data compiled by Bloomberg. This indicator is at $80.84 a barrel today. Bollinger Bands plot support and resistance levels based on volatility and are used by investors to determine entry points for buying or selling contracts. “We haven’t seen any evidence yet of people getting aggressively into oil,” said Michael McCarthy, a chief market strategist at CMC Markets Asia Pacific Pty Ltd. in Sydney. “The macro situation is also a very poor backdrop for oil at the moment.” The Organization of Petroleum Exporting Countries will decide whether to cut supply after monitoring the global economy over the next two months and the pace of Libya’s production recovery, an OPEC official with knowledge of the matter said yesterday. Saudi Arabia will probably maintain current production rates so long as economic woes in Europe and the U.S. don’t spread to emerging nations where consumption grows faster, said an official from one of the Organization of Petroleum Exporting Countries’ 12 members, who is not authorized to speak publicly and declined to be identified by name. Twenty-two of 40 analysts, or 55 percent, forecast oil will decline through Sept. 30, while nine respondents, or 23 percent, predicted prices will increase, according to the Bloomberg survey. Last week, 45 percent of the surveyed analysts projected a drop. To contact the reporter on this story: Rachel Graham in London rgraham13@bloomberg.net To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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