Crude prices rebounded above US$80 a barrel yesterday as global markets rallied after the West governments launched bailout schemes to shore up banks.

US Treasury Secretary Henry Paulson said Washington was developing plans to buy equity in financial institutions. Meanwhile Britain, Germany, France, Italy and other European governments all announced rescue packages.

Also yesterday, Goldman Sachs said that global financial turmoil would take a far bigger toll on demand and cut its year-end US crude oil target to US$70 a barrel.

Light, sweet crude for November delivery rose US$3.49 to US$81.19 a barrel on the New York Mercantile Exchange.