Oil rises above $97 a day after price plunge
BANGKOK (AP) — Oil rose above $97 a barrel Tuesday in Asia, clawing back some losses after prices unexpectedly took a plunge the day before.
Benchmark crude for October delivery was up 44 cents at $97.06 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell $2.38, or 2.4 percent, to finish at $96.62 a barrel on the Nymex on Monday.
On Monday afternoon in the U.S., oil suddenly plunged more than $4 per barrel, erasing the gains made last week when the Federal Reserve unveiled new steps to boost the U.S. economy.
Traders were initially unsure of the cause of the plunge. Some wondered whether an errant trade or another rumor about a release of oil from the Strategic Petroleum Reserve was to blame. NYMEX operator CME Group said there were no technical glitches to explain the drop.
Oil analyst Stephen Schork said volatility arising from the expiration of October options contracts could have been exaggerated by the lower trading volume that occurred Monday due to the observance of a Jewish holiday.
Business Photo Galleriesview all
- 10457Oklahoma tornadoes: Cost, custom keep basements scarce
- 9286Oklahoma tornadoes: Plaza Towers Elementary School teacher shoved students into bathroom as wall collapsed
- 5848Downtown wish list includes Super Target
- 4983Oklahoma tornadoes: The 'Big Dog,' the little boy and the hug that triumphs over tragedy
- 4420Oklahoma City pastor will face trial in fatal shooting of son-in law
- 4301Oklahoma tornadoes: Price family recovering after some heavy blows
- 4216How to help tornado victims