Oil steady at $88.97 as equities recover

Crude oil was little changed as US stock futures rose after central banks from the US to China cut interest rates yesterday to bolster the global economy.

Oil prices fell 12 per cent in the previous six days as stocks tumbled on signs the economy is slowing. Iranian Oil Minister Gholamhossein Nozari said that the Organization of Petroleum Exporting Countries (Opec) may hold an emergency meeting in November to review oil output, state news agency IRNA reported.

“We are taking a breather here after some very volatile days,’’ said Michael Fitzpatrick, vice president for energy risk management at MF Global in New York. “The main driver of the market has been concern that the global economy will contract. There’s been a lot of trading on emotion because of the recent headlines.’’

Crude oil for November delivery rose 2 cents to $88.97 a barrel at 9:07 am on the New York Mercantile Exchange. Futures touched $86.05 yesterday, the lowest since December 6. Prices, which are up 11 per cent from a year ago, have dropped 42 per cent from the record $147.27 a barrel reached on July 11.

“We held at important support around $86 yesterday,’’ said Tom Bentz, senior energy analyst at BNP Paribas in New York. “If we are able to break through, prices are going to fall to the lower $80s and maybe the high $70s.’’

Opec may meet November 18 in Vienna to discuss the effect of the financial crisis on oil markets, a top oil official of Libya said. The next scheduled meeting of ministers is December 17 in Algeria.