Crude Oil Rises on Signs U.S. Will Revive Bank Bailout Plan

According to Bloomberg:

Sept. 30 (Bloomberg) — Crude oil rose, rebounding from its biggest drop in seven years, after U.S. lawmakers said they intend to salvage a $700 billion bank-rescue package that may avert an economic slowdown.


Oil fell more than $10 yesterday and global stock markets were battered after the House of Representatives failed to pass a rescue bill and European governments bailed out three banks. The U.S. Senate will try to revive the financial package tomorrow.

“The market is being totally driven by what is happening in Washington,” said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York. 

“What happens to oil prices depends completely on whether the rescue package is approved or not.”Crude oil for November delivery rose $3.74, or 3.9 percent, to $100.11 a barrel at 1:38 p.m. on the New York Mercantile Exchange. 

Prices are down 32 percent from the record $147.27 a barrel reached on July 11.“We won’t be seeing oil near $150 anytime soon,” said Sarah Emerson, managing director of Energy Security Analysis Inc., a consulting firm in Wakefield, Massachusetts. 

“Even if we get the bailout, there’s no guarantee that it will work.”

Read the full article at Bloomberg

-This bail out will be the key reason why oil prices goes up and down wildly that my gut is telling me about previously. The wild large flucuation due to bail out, possible fed Interest rate cut and more uncertain manupilation by the USA Government and Feds.
Well my guts are telling me about the larger wave is coming…hold on to your boat! :)

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  • Anonymous

    The lower house of the US congress has rejected the $700bn deal to bail out Wall Street. What will this mean for the US economy?

  • Simon Tay

    Good question, it’s neither good nor bad.

    Life still goes on…unless you are one of those bankers or invested in those banks’ products.

    Day Traders enjoy great fluctuation in stocks and shares to “play around” with and some made quite lump sum of money by shorting the market.

    Now that the Government are controlling shorting trading in Singapore and USA…

    Things are going to be hairy as nobody will benefit from traders/investors to pull out their money from trading because of restriction to “short” the market.

    There is plans for the bail out to be changed and approved…last I heard the house approved a modified version of the bail out.

    Not sure what is the out come now…