Oil Rebounds Off 4-Year Low On Short Covering
NEW YORK, Oct 10 (Reuters) - Global oil prices rebounded on Friday, after sinking to the lowest levels in nearly four years earlier in the day, as end-of-week short-covering stalled a near four-month price rout.
Pressured by ample supply and weak economic data, Brent crude oil has dropped $25 dollars since June and on Friday fell below $90 a barrel to its lowest level since December 2010. U.S. prices have also fallen sharply.
But position squaring by traders late on Friday, ahead of the weekend, provided some support after sharp losses earlier this week.
"It looks like we oversold the downside. A lot of people are covering shorts before the weekend," said Carl Larry, chief executive of consultancy Oil Outlooks.
Brent crude for November delivery settled up 16 cents at $90.21 a barrel after earlier falling to $88.11, the lowest since December 2010.
U.S. November crude finished up just 5 cents at $85.82 a barrel. The contract earlier hit a session low of $83.59, its lowest since July 2012.
Many remain bearish about oil prices, in part because there has been little sign that the Organization of the Petroleum Exporting Countries plans to cut production in the face of falling prices.
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