NEW YORK, Sept. 27 (Xinhua) -- Crude prices rebounded on Thursday as tension between Iran and the West over Teheran's disputed nuclear program were likely to rise.
After U.S. President Barack Obama pledged that the U.S. will do "what we must" to prevent Iran from acquiring a nuclear weapon, Israeli Prime Minister Benjamin Netanyahu on Thursday called for a "clear red line" and clarifying "the way in which Iran won't have nuclear arms" in his speech to the United Nations.
To add to the fuel, Iranian President Mahmoud Ahmadinejad said Iran was capable of "neutralizing" all efforts to sabotage its nuclear facilities. The confrontation helped snap U.S. crude's third losing session streak.
Besides, Spain, the fourth largest economy in the euro zone, announced Thursday a detailed timetable for economic reforms and a tough 2013 budget that focused primarily on spending cuts instead of tax increases.
The new plan generated hopes for resolving the country's debt crisis.
On the economic front, U.S. initial jobless claims dropped 26, 000 last week, according to the Labor Department. The results were much better than market expectation, helping lift the market sentiment.
But the Commerce Department cut its estimates for economic growth rate in the second quarter to 1.3 percent from the previous 1.7 percent. And a separate report from the Commerce Department showed durable goods orders tumbled 13 percent in August, steeper than 5 percent expected. It was the biggest drop since January 2009.
Light, sweet crude for November delivery rose 1.87 dollars, or 2.08 percent, to settle at 91.85 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for November delivery gained 1.97 dollars, or 1.79 percent, to close at 112.01 dollars a barrel.