Oil Prices Rebound Off 17-Month Low

Vienna, Austria, Oct. 29, 2008--Oil prices spiked higher Wednesday as a rally in stock markets boosted views the market has now priced in the worst of a global economic slowdown and its impact on crude demand.

As crude rose from a 17-month low, gasoline and heating oil prices also bounced upward.

Oil investors have been closely tracking equity indexes for signs of market sentiment. They took heart from a rally in stocks that began Tuesday in the U.S. and continued in Asia and Europe on Wednesday.

Light, sweet crude for December delivery rose $3.69 to $66.42 a barrel on the New York Mercantile Exchange. The contract overnight fell 49 cents to settle at $62.73, the lowest closing price since May 15, 2007.

Oil prices have fallen by about 57 percent since peaking at nearly $150 a barrel in mid-July