Oil prices rebounded today after another steep drop yesterday, although sentiment remained depressed by the prospect of the global economy tipping into recession.
Traders said the mood in the market was still finely balanced after last week's attacks in the United States. The tension was between fear military retaliation could disrupt oil supplies and concern economic recession would depress demand.
By 10.30, benchmark Brent crude for November delivery was 45 cents higher at $26.77 dollars a barrel. It fell by almost one dollar yesterday, the third consecutive session of substantial losses.
US light sweet crude for October delivery rose 29 cents to $27.01.
Stock markets remained weak today, although in New York yesterday, share prices closed off the day's lows.
GNI Research analyst Lawrence Eagles predicted the risk remained of another slide for oil prices. "I think the rally on the Dow [Jones Industrial Average] overnight has helped, but stock markets this morning are quite weak," he said.
Oil prices had surged to a high of $31.05 a barrel in the immediate aftermath of the suicide aircraft attacks on the World Trade Center in New York and the Pentagon in Washington on September 11th.