•Global crude futures firmed Tuesday, as a 1% interest rate cut in Australia sparked expectations that global central banks would launch a co-ordinated move to lower interest rates to help demand, sources said.

•"Expectations of rate cuts combined with the sharp correction in commodities (the DJ-AIG commodity index is at the lowest level since early 2005 and down -17% year to date) could create some bottom picking," Petromatrix oil analysts said in a report.

•"This is technical bounce. The dollar is giving up some of its gains from yesterday and some equities have recovered," a broker said. However, "the dust hasn't settled yet. We don't know the extent to which demand will slow down," he added. "We would like to get back to some stabilization," a broker added, referring to the recent slide in oil prices.

•The ICE Dollar index softened to 81.092, eating into yesterday's gains, ahead on the release of minutes of US Federal Open Market Committee's interest rate meeting on September 16.

Updated: October 7, 2008