Crude back above $50 but analysts say further falls on way

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Crude put on 76 cents to $50.18 in New York although it was still below $50 in London, up $1.13 to $49.21. The rally, inspired by a solid performance by Asian stocks, came a day after oil fell below $50 for the first time since May 2005.

However, analysts warned the recovery would be short-lived with prices set to fall further as demand dwindles during the global recession.

Analysts at ODL Securities said: "This downtrend has provided us with small pockets of consolidation on the way down but no real corrective rally. This suggests the down move is very powerful, with many traders looking to sell into any bounce. The short, medium and long-term trends are all bearish. As the recession continues, the outlook for oil demand is very bleak especially with the dismal condition of the US automobile industry."

Despite today's slight rise, oil is still 12% down on the week and almost $100 cheaper than at its peak of $147 in July.

"The economy is pulling everything down like a black hole," said Anthony Nunan at Tokyo-based Mitsubishi. "Until the economy stabilises, it will be hard for oil to put in a bottom."

The price falls brought more Opec members out in support of further output cuts. Libya's top oil official said the cartel may decide to reduce supply further at its informal meeting in Cairo next week if it finds members have implemented a previous decision to lower output.