Crude rises $1/bbl, buoyed by EU-Irish debt plan, weaker dollar

29 November 2010 09:08  [Source: ICIS news]

SINGAPORE (ICIS)--Crude futures climbed more than $1/bbl on Monday, driven up by news that the EU had firmed up its agreement to bailout debt-laden Ireland and also by a weaker US dollar.

At 08:43 GMT, January Brent on London’s ICE futures was trading at $86.49/bbl, up $0.91/bbl on the previous close. Earlier, the North Sea benchmark hit a session high of $86.72/bbl, up $1.14/bbl.

January NYMEX light sweet crude futures were trading at $84.77/bbl, up $1.01/bbl on the previous close. Earlier, the US crude hit a session high of $85.03/bbl, up $1.27/bbl.

EU foreign ministers agreed late on Sunday to a €85bn ($113bn) bailout of the Irish Republic. The loan will be used to support the Irish banking system and help cover the Irish government’s budget deficit.

The move was viewed as positive sign of the ability of the EU to successfully handle Eurozone debt problems and prevent the need for further bailouts of Portugal and Spain.

The US dollar also traded lower against leading currencies on Monday, making dollar denominated commodities such as crude more attractive to overseas investors.

($1 = €0.75)

To discuss issues facing the chemical industry go to ICIS connect

By: James Dennis
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly