Greek bailout boosts oil market

World oil prices climbed Friday boosted by news of a second bailout deal for Greece which dampened concerns that the eurozone debt crisis would sap global energy demand.

New York's main contract, West Texas Intermediate light, sweet crude for delivery in September, closed at $99.87 a barrel, up 74 cents from late Thursday.

Earlier it surged to $100.19, the highest level since June.

In London Brent North Sea crude for September delivery gained $1.16 a barrel to settle at $118.67.

Traders credited the deal reached by eurozone leaders and private creditors Thursday to give Greece a new 159-billion-euro ($229-billion) bailout, to prevent the debt crisis from spreading worldwide.

'The plan... provided more measures to stimulate the Greek economy and to intervene to support other nations before a crisis might develop,' said Sucden analyst Brenda Sullivan.

'For now the Greek-focused deal sees general market sentiment more positive as evidenced by the strength in the euro, equities and energy markets.'

In recent weeks, doubts over a new Greek eurozone bailout had sparked fears of a possible slump in European and global energy demand.

'Energy markets seemed to wait almost all week for Thursday's Greek aid deal,' Sullivan said.

Phillip Streible of Lind-Waldock in New York cited numerous bullish signals for oil prices.

'The market is on a positive footing,' he said.

'There are a lot of positive things going on. You've got decent economic data in the US, you've had strong corporate earnings, you've had debt resolution in Europe and also some debt ceiling talks in the US,' he said.

'I would not be surprised if we get to around $105.'

Soruce : New Age

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