PERTH - Oil rose for a third day on Friday, towards $99 a barrel, on growing U.S. and Nigerian supply concerns even as the dollar jumped on an emerging U.S. government plan for a comprehensive solution to the financial crisis.
Central banks around the world have pumped billions of dollars to credit markets and U.S. authorities are working on a plan to mop up bad debt after previous actions including bailouts failed to restore market confidence, aiding commodities that have been hammered by a flight from risk.
U.S. light crude for October delivery rose 62 cents to $98.50 a barrel by 2:45 a.m. EDT, posting a third day of gains as prices rebounded from a seven-month low of $90.51 a barrel on Wednesday in the aftermath of Lehman Brothers' (LEH.N: Quote, Profile, Research, Stock Buzz) collapse, the near failure of insurer AIG and takeover of Merrill Lynch.
London Brent crude rose 43 cents to $95.62.
"I think oil is up because there is more confidence in the financial markets. There is a feeling that the crisis is bottoming out and some may see it as a good time to buy," said Gerard Rigby, an independent energy consultant based in Sydney.
While the financial crisis roiled markets from stocks to bonds to foreign exchange, some oil traders were shifting their focus back to fundamentals, with worries over falling U.S. inventory levels and Nigerian attacks aiding a $7 recovery.
But analysts said ructions on Wall Street would still be a key factor.
Central banks around the world have pumped billions of dollars to credit markets and U.S. authorities are working on a plan to mop up bad debt after previous actions including bailouts failed to restore market confidence, aiding commodities that have been hammered by a flight from risk.
U.S. light crude for October delivery rose 62 cents to $98.50 a barrel by 2:45 a.m. EDT, posting a third day of gains as prices rebounded from a seven-month low of $90.51 a barrel on Wednesday in the aftermath of Lehman Brothers' (LEH.N: Quote, Profile, Research, Stock Buzz) collapse, the near failure of insurer AIG and takeover of Merrill Lynch.
London Brent crude rose 43 cents to $95.62.
"I think oil is up because there is more confidence in the financial markets. There is a feeling that the crisis is bottoming out and some may see it as a good time to buy," said Gerard Rigby, an independent energy consultant based in Sydney.
While the financial crisis roiled markets from stocks to bonds to foreign exchange, some oil traders were shifting their focus back to fundamentals, with worries over falling U.S. inventory levels and Nigerian attacks aiding a $7 recovery.
But analysts said ructions on Wall Street would still be a key factor.
