London: Oil prices jumped more than two dollars today, reversing three days of losses as traders bet on a further falls to energy inventories in key consumer the United States. Despite rising, prices remained well off historic highs of above 100 dollars a barrel that were reached last week. New York s main contract, light sweet crude for delivery in February, jumped 2.21 dollars to 97.30 dollars in floor trading.
It struck a record high of 100.09 dollars last Thursday but fell heavily thereafter as traders took profits. Brent North Sea crude for February rallied 2.10 dollars to 96.49 dollars. Its record set last week is 98.50 dollars. "The petroleum market has rebounded sharply from yesterday's slide as bargain hunting emerged at the lower levels as traders anticipate a further decline in US crude oil stocks in tomorrow's inventory report," said Citigroup analyst Tim Evans.
The US Department of Energy (DoE) was due tomorrow to publish its weekly snapshot of American crude stockpiles for the week ending January 4. Oil prices had fallen sharply Monday despite the Pentagon reporting a weekend encounter between the US Navy and Iranian vessels in the strategic Strait of Hormuz. Traders said prices also declined as some speculators engaged in a bout of profit-taking amid lingering fears that slower US economic growth could dent global energy demand.
