Oil recovers after four-day slump
Posted by admin on 18 July, 2008 under Business news | 
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Oil prices moved back above $130 a barrel after sliding more than 11% in the past four days, with prices dropping $15 a barrel in that period.
Fears of high prices weakening the US economy had sent oil down to one of the biggest weekly falls since 1983.
On Friday, crude for August delivery rose by up to $2.75, or 2.1%, to $132 in New York. Brent crude for September was up by $2.62, or 2%, at $133.69.
Prices rose after the IMF raised its global economic forecast for 2008.
Other factors have helped to boost prices.
An expansion of an oil workers’ strike in Brazil has not affected production.
And although a pipeline in Nigeria belonging to Italian energy group Eni was blown up, another pipeline belonging to Chevron in the country has been repaired after sabotage in June.
And the US said on Wednesday it was sending an envoy to Geneva to join nuclear talks with Iran for the first time.
Military action against Iran could lead to the closure of the Straits of Hormuz, through which nearly half of the world’s traded oil moves.
Roy Mason, of oil consultancy Oil Movements, estimated on Thursday that Opec oil exports, excluding Angola and Ecuador, would rise by 560,000 barrels per day in the four weeks to the beginning of August.
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