Oil prices bounced back from two-month lows on Wednesday, ahead of the release of a weekly US petroleum supply report expected to show a fall of 1.1 million barrels in crude and gasoline stocks. Light, sweet crude for October delivery rose marginally to US$68.71 a barrel in Asian electronic trading on the New York Mercantile Exchange, in Singapore.
Chevron's discovery of oil supplies has also supported the fall. Chevron has found a 300 sq. mile region in the Gulf of Mexico where its test well sits could hold between 3 billion and 15 billion barrels of oil and natural gas liquids.
The market increasingly trusts that the stand-off over Iran's controversial nuclear program will drag on and the risk premium has been priced accordingly.
07-Sep-06 
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