Oil rises above $115 after steep slide

LONDON - Oil rose above $115 a barrel on Monday as some investors saw buying opportunities after prices posted the biggest one-day slide in percentage terms since 2004 in the previous session.

By (Reuters)

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Published: Mon 25 Aug 2008, 7:03 PM

Last updated: Sun 5 Apr 2015, 11:57 AM

Analysts said tensions between the West and Russia over Georgia would lend prices support. Moscow's military intervention in Georgia has disrupted some shipments of Azeri oil through Georgia.

"Following the big move we had on Friday, you can have a move of a dollar or so as traders adjust positions," said Olivier Jakob, oil analyst at Petromatrix. "There is low volume with the UK holiday today."

U.S. crude rose 97 cents to $115.56 a barrel by 1100 GMT. On Friday, it fell more than 5.4 percent, the largest one-day slide since Dec. 27, 2004. Brent crude rose $1.15 to $115.07 on Monday.

Oil has fallen from a record high of $147.27 reached in July on concern that high energy costs are taking a toll on global fuel demand. Prices remain up about 15 percent so far this year.

Russia, which began to pull out the bulk of its forces from Georgia last week, said on Saturday its troops would patrol one of Georgia's main Black Sea ports, defying Western demands for a complete pullback.

Georgia's main east-west railway was reopened overnight following a fuel train explosion on the line west of the central town of Gori, Georgian Railways said on Monday.

The explosion, which police said they believed was caused by a landmine, occurred on the main track of the railway line linking eastern and western Georgia -- a route used by oil exports from Azerbaijan to European markets.

Russian lawmakers on Monday urged the Kremlin to recognise two rebel regions of Georgia, a move seen as likely to worsen relations with the West. Russia said its troops would patrol one of Georgia's Black Sea ports, Poti.

Oil's fall on Friday was prompted by indications of rising supply from OPEC, weakening global demand and a rebound in the U.S. dollar.

U.S. auto and travel group AAA said Labor Day holiday travel was expected to fall this year by the largest amount in at least eight years as consumers struggle with higher gasoline prices and airfares.

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