NEW YORK: Oil prices slipped on Monday, briefly touching their lowest level in almost two months on concerns over the state of the global economy.
US crude oil for August delivery fell 38 cents to $59.51 a barrel, after earlier falling to a low of $58.32, the lowest since May 18. London Brent rose 8 cents to $60.60 a barrel.
The losses add to last week’s 11 percent slide — the market’s biggest weekly decline since late January — triggered by concerns another economic dip could delay a rebound in demand for fuel.
Meanwhile, global stocks rebounded on Monday after positive comments on financial shares from an influential bank analyst who is normally bearish, while the US dollar edged up against the yen, off a five-month low.
US and euro zone government bond prices mostly eased and reversed early gains, as the rebound in equities diminished the allure of lower risk fixed-income assets.
Copper prices and other industrial metals also fell on economic concerns that earlier had pushed equity markets lower as investors fretted about corporate earnings.
The euro rose broadly as hopes that US earnings may not be as weak as initially feared sparked a rally on Wall Street.
European shares rallied, recouping some of last week’s steep losses, as banks tracked advances in US financials that US stocks sharply higher in a volatile session.
The S&P Financial Index rose 4.2 percent, while the Select Sector SPDR Financial ETF climbed 4.3 percent.
After 1 p.m. (1700 GMT), the Dow Jones Industrial Average was up 131.50 points, or 1.61 percent, at 8,278.02. The Standard & Poor’s 500 Index was up 15.40 points, or 1.75 percent, at 894.53. The Nasdaq Composite Index was up 23.47 points, or 1.34 percent, at 1,779.50.
The FTSEurofirst 300 index of top European shares closed up 2.0 percent at 830.19 points.
The euro also gained after European Central Bank President Jean-Claude Trichet sounded a bit more upbeat about euro-zone growth for the rest of 2009.
The equity rally and Trichet’s comments helped reverse earlier gains for the yen and dollar, which tend to rise when investors grow anxious and sell risky assets that often are financed with cheaply-borrowed dollars and yen.
The euro was up 0.31 percent at $1.3973.
The dollar fell against a basket of major currencies, with the US Dollar Index off 0.16 percent at 80.102.
Against the yen, the dollar was up 0.17 percent at 92.68.
Gold edged lower as an uptick in the dollar against a basket of currencies dented interest in the precious metal as a currency hedge.
Upside surprises in bank corporate earnings reports this week could boost confidence in the banking system and damp demand for safe-haven US government debt.
Asian shares fell 2.6 percent, with Japan’s Nikkei down for a ninth straight day, as concerns about company earnings outlooks weighed.
The Nikkei average fell 2.6 percent to an eight-week low, MSCI’s measure of stocks elsewhere in the Asia-Pacific also fell 2.6 percent.
