CEDA highlights advancement of major projects and programs under Vision 2030    Saudi commitment to pragmatic solutions towards a greener future is reemphasized as SGI Forum set to kick off on Tuesday    Vietnam approves $67 billion high-speed railway linking Hanoi and Ho Chi Minh City    Canadian news publishers sue OpenAI over alleged copyright infringement    Driving the future: How public transportation is transforming Saudi Arabia    Syrian government forces clash with insurgents in Aleppo    Poland fortifies eastern border with military project    Three crushed to death in Gaza bakery crowd amid worsening food crisis    Australia bans children under 16 from social media in groundbreaking legislation    Mahrez's strike secures Al-Ahli a narrow win over Al-Wehda    FIFA announces nominees for The Best FIFA Football Awards 2024    Riyadh Metro: An enduring legacy of King Salman's leadership and vision for Riyadh's future    Saudi Arabia's FIFA World Cup 2034 bid achieves highest evaluation score in history    Substitute Al-Othman leads Al-Qadsiah to a crucial victory against Al-Khaleej    Minister Al-Samaani inaugurates technical office to enhance judicial quality in Qassim    Saudi Arabia receives extradited citizen wanted for corruption crimes from Russia    K-Pop group NewJeans split from agency in mistreatment row    Culture minister visits Diriyah Art Futures    Best-selling novelist Barbara Taylor Bradford dies    Adele doesn't know when she'll perform again after tearful Vegas goodbye    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Oil prices rebound on AIG rescue, weaker U.S. dollar
Published in Saudi Press Agency on 17 - 09 - 2008

Oil prices rebounded Wednesday as a U.S. government rescue of insurer American International Group (AIG) calmed nervous investors who feared the company's collapse could have sparked a plunge in commodities, the U.S. dollar declined versus other major currencies, and U.S. gasoline inventories fell to a record low.
Light sweet crude oil for October delivery was up almost $1.50 to nearly $93 a barrel in early-afternoon trading on the New York Mercantile Exchange. The front-month contract had fallen $10 in the previous two sessions, bringing prices to their lowest level in seven months and down 8 percent for the year.
Wednesday's oil gain was energized by the rescue of AIG. The Federal Reserve (Fed) late Tuesday agreed to inject $85 billion in taxpayer money into the insurance giant in return for a 79.9 percent ownership stake. The bailout was aimed at avoiding an AIG collapse due to massive loses tied to the subprime mortgage crisis and tight credit.
If AIG had been allowed to fail, investors feared the company would seek to raise cash by selling positions in energy and other commodities, sparking a huge commodities liquidation.
A slightly weaker U.S. dollar also boosted oil prices. A falling dollar encourages investors to shift money into commodities, particularly crude oil, which is bought and sold in dollars.
Also on Wednesday, the U.S. government reported a bigger-than-expected decline in crude supplies, reflecting the shutdown of most gulf coast oil production because of two recent hurricanes. The Energy Information Administration (EIA) said crude inventories fell by 6.3 million barrels last week, far bigger than the 3.7 million barrel decline expected by analysts.
Gasoline supplies fell to a record low, posting the smallest inventory level since at least 1990, when the government began issuing weekly inventory data. Gasoline stockpiles fell 3.3 million barrels to 184.6 million barrels, the EIA said.
Inventories of distillates - including diesel, heating oil, and jet fuel - fell by a smaller-than-expected 900,000 barrels to 129.6 million barrels. U.S. refinery utilization fell 0.9 percentage points to 77.4 percent of total capacity, the lowest level since October 2005 when Hurricanes Katrina and Rita devastated the U.S. gulf coast.


Clic here to read the story from its source.