Brent Crude Oil Rises To $106

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 Brent crude climbed above 106 dollars a barrel on Friday as a pledge by the G20 economies to preserve financial stability supported equities and the euro.

Some investors saw the previous day’s slide to a six-week low as a buying opportunity.

Finance ministers and central bankers from the Group of 20 said they would take “all steps necessary” to calm the global financial system, helping the euro advance against the dollar and European shares to rise.

Brent crude was up 1.07 dollars at 106.56 dollars, after rising as high as 107.00 dollars.  U.S. crude gained 75 cents to 81.26 dollars a barrel, after rising as high as 81.81 dollars.

“We’re seeing some stabilisation, some buyers coming in bargain-hunting,” said Carsten Fritsch, an analyst at Commerzbank in Frankfurt.
“It’s too early to say if prices have bottomed, given economic concerns.”

Oil has been under pressure over the past few days after the International Monetary Fund lowered its global growth forecast, followed by the U.S. Federal Reserve’s warning of “significant downside risks” to the economy.

On Thursday, Brent lost 4.87 dollars to settle at 105.49 dollars on concern demand will fall as weak economic data from China and Europe triggered fears of a recession.