BANGKOK – The price of oil extended gains Tuesday after Asian stock markets trimmed losses following a big sell-off.
Benchmark oil for August delivery was up 42 cents to $95.60 a barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract jumped $1.49 to close at $95.18 on Monday.
Oil sank by $4.55 a barrel, or 4.7 percent, on Thursday and Friday after the Federal Reserve spooked investors by signaling the end of a bond-buying program that has boosted the economy.
Oil fell initially Monday because of growing worries that China's decision to clamp down on informal lending could hamper growth in a major energy consuming country. Oil dropped as low as $92.67 a barrel.
But it regained ground after Wall Street indexes clawed back losses and then extended gains in Asia as some markets returned to positive territory. Oil trading is often influenced by stock market trends which can reflect the state of confidence in the economic outlook.
Brent crude, which is used to set prices for oil used by many U.S. refineries to make gasoline, was up 88 cents at $102.04.
In other energy futures trading on the Nymex:
— Natural gas was down 0.7 cent at $3.732 per 1,000 cubic feet.
— Heating oil rose 2.3 cents to $2.876 a gallon.
— Wholesale gasoline added 1.9 cents to $2.746 a gallon.