Crude oil nears $100 as bargain hunters step in

Oil prices pushed towards $100 a barrel on Friday, recovering some ground after a steep six-day fall as bargain hunters stepped in, although worries about global demand and oversupply kept a lid on the rebound.

Analysts said the market seemed to be stabilising after a week of heavy liquidation, in which prices tumbled from over $106 along with a rout in gold and industrial metals.

"It's probably too early to say if we are out of the woods after such a big sell-off," said Ole Hansen, head of commodity strategy at Saxo Bank. "At the moment it's more a question of establishing some support in the market, and so far that has been reasonably successful."
 
Brent crude was up 74 cents to $99.87 a barrel by 1116 GMT, off an intraday high of $100.33 a barrel. US crude rose 80 cents to $88.53, but market participants were cautious as to whether the recovery had legs.