AP:

VIENNA, Austria — Oil prices rose off ealier lows on a rate cut by the world’s major central banks Wednesday, recovering after investor concerns that the U.S. credit crisis was enveloping the globe – and would hurt crude demand — drove prices down.
For people worldwide worried about the erosion of their investments as stock markets plummet and more and more financial institutions are threatened by meltdown, oil’s recent and relative affordability brings a small measure of comfort. Prices have fallen about 40 percent since peaking near $150 in July.
While still down from Tuesday’s closing, prices rose from earlier lows of the day after the Federal Reserve, acting in coordination with other global central banking authorities, cut a key U.S. interest rate by half a percentage point to 1.5 percent.
In Europe, which also has been hard hit by the financial crisis, the Bank of England cut its rate by half a point to 4.5 percent, while the European Central Bank sliced its rate to 3.75 percent. Other central banks also taking part include the banks of Canada, Sweden, and Switzerland.
Light, sweet crude for November delivery was down $1.22 to $88.84 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. The contract overnight rose $2.25 to settle at $90.06.