Oil Market Outlook | Bangkok Post: business

Crude prices rebounded late last week after five central banks launched coordinated efforts to provide loans to euro zone banks. This offset the earlier fall driven by plunging US gasoline demand, Moody's downgrade of French banks, and downward revisions of global oil demand forecasts. West Texas Intermediate (WTI) closed the week at $87.96 a barrel, $0.72 higher than the prior week, while ICE Brent ended down $0.55 at $112.22.

Market sentiment received a lift a day earlier when German and French leaders called on Greece to enforce austerity measures, determined to keep Greece in the euro zone. The Italian government also sought help from China to buy Italian bonds to help pull the country out of a debt crisis. The positive news lessened market worries after Moody's cut the credit ratings of Societe Generale and Credit Agricole due to worsening financial conditions, while leaving France's largest bank, BNP Paribas, on review.

In the US, economic data continued to show signs of contraction. Gasoline consumption plunged to an eight-year low in the summer at an average 9.2 million barrels per day as high pump prices discouraged travel. Jobless claims recorded an unexpected rise while the gauge of consumer expectations dipped to a 31-year low as Americans worried the economy could fall back into recession.