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NYMEX-Oil rebounds after record correction

Published 05/08/2011, 07:58 PM
Updated 05/08/2011, 08:04 PM
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By Randy Fabi

SINGAPORE, May 9 (Reuters) - U.S. crude rebounded more than a $1 a barrel on Monday after plummeting over $16 last week as investors fled commodities on worries over slowing global growth.

FUNDAMENTALS

* NYMEX crude for June rose to an intraday high of $98.87 a barrel, up $1.69 by 2344 GMT. Prices tumbled $16.75 last week, the biggest weekly drop since the contract began trading in 1983.

* Brent crude fell a total of $16.76 a barrel last week, closing on Friday at $109.13.

* Goldman Sachs, which in April predicted last week's major correction in oil prices, said that oil could surpass its recent highs by 2012 as global oil supplies continue to tighten. [ID:nLDE74513V]

* Selling pressure on oil and other commodities came on several fronts throughout last week. Investors weighed factors from the death of Osama bin Laden to the impact of higher fuel and commodity costs on consumer nation economies.

* Money managers reduced their net-long U.S. crude futures and options position by 7,294 to 293,823 for the week to May 3. [ID:nN0647126]

* OPEC delegates welcomed oil's sharp slide, saying high prices could hurt the world economy and accelerate the use of alternative fuels in the longer term. [ID:nLDE7450RI]

* Libyan rebels fought a fierce battle with forces loyal to Muammar Gaddafi near the airport at the western city of Misrata on Sunday as NATO planes targeted government ammunition stores on another front in the war. [ID:nLDE7470DC]

MARKETS NEWS

* The commodities sell-off is bringing a sudden chill to financial markets where investors were already turning cautious about the prospected of a slowdown in China and other emerging economies given steady monetary tightening. [ID:nLDE7451AD]

* The euro on Friday posted its biggest weekly loss against the dollar since January and further losses were seen as likely, as sovereign debt concerns reappeared.

* Two Federal Reserve officials on Friday stressed there will be no rush to roll back the U.S. central bank's super-easy monetary policy with the labour market still healing and inflation expectations largely in check. [ID:nN06238202]

* U.S. companies created jobs at the fastest paces in five years in April, pointing to underlying strength in the economy even as the jobless rate rose to 9.0 percent.

DATA/EVENTS

* The following data is expected on Monday:

1400 U.S. Employment Index Apr

RELATED NEWS > In commodity route, more traders in than out [ID:nN06234015] > Oil crash pits floor veterans vs computer algos[ID:nN06196031] > Obama, taking aim at Big Oil, says gas prices hurt > ANALYSIS-Oil, other commods too high for China [ID:nL3E7G60OC]

(Reporting by Randy Fabi; Editing by Ed Lane)

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