Brent oil prices are trading higher on Wednesday after a 13 percent fall over three weeks tempts buyers amid falling stock markets in the US and Asia.
In London, Brent crude oil futures for October 2010 delivery was trading at $72.75, 07.45 GMT on the ICE Futures Exchange, up around $0.50 on yesterday’s closing price.
The price of Brent oil has retreated about 13 percent in the past three weeks, creating a buying opportunity for oil traders despite weaker Asian stock markets and a stronger dollar.
“The fact that oil has dropped so much in a short period of time is attracting some buyers. We have at least this morning snapped the losing streak in oil,” said Victor Shum, at consultancy Purvin & Gertz in Singapore.
Both Brent and WTI oil prices took a hammering Tuesday after the latest data from the US National Association of Realtors said sales of previously occupied homes fell 27.2 percent in July to an annual rate of 3.83 million, far below what analysts expected.
Meanwhile, Asian stock markets are trading lower on Wednesday, with investors confidence dampened by concerns about a global economic slowdown.