Crude jumps $2/bbl on weak US dollar as EU moves to protect euro

10 May 2010 07:02  [Source: ICIS news]

SINGAPORE (ICIS news)--Crude futures rose by as much as $2/bbl on Monday, regaining ground lost in the previous session, amid a weaker US dollar as the EU moved to protect the euro through opening access to a €500bn ($641bn) emergency funding for its debt-ridden members.

At 0525 GMT, June Brent on London’s ICE futures was trading at $80.18/bbl, up $1.91/bbl from the previous close, after hitting a session high of $80.28/bbl.

At the same time, June NYMEX light sweet crude futures were trading at $77.11/bbl, up $2.00/bbl from the previous close and off an intra-day high of $77.22/bbl.

The energy and equity markets were buoyed on Monday by news that the EU had stepped up efforts to protect its member nations from the debt crisis engulfing Greece. The International Monetary Fund (IMF) has provided a further €250bn ($320bn) of funds to the EU.

The move follows an earlier €110bn ($141bn) bailout package for Greece agreed between the EU and the IMF last week.

The consequent strengthening of the euro against the US dollar made oil - a dollar-denominated commodity - more attractive to investors.

Crude prices had fallen by around $9-11/bbl last week due to poor sentiment across the energy and equities markets amid worries that the economic crisis in Greece could spread to other European nations, most notably Spain and Portugal.

($1 = €0.78)

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By: James Dennis
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