Crude rises as Greek debt fears ease, US dollar softens

29 June 2011 10:35  [Source: ICIS news]

SINGAPORE (ICIS)--Crude futures rose on Wednesday, with ICE Brent gaining more than $1/bbl (€0.70/bbl) at one stage, on easing worries over Greek debts, aided by a weakening of the US dollar and a larger-than-expected fall in US crude stocks.

At 09:04 GMT, August Brent on London’s ICE futures exchange was trading at $109.24/bbl, up 46 cents/bbl from the previous close. Earlier, the North Sea benchmark rose to a session high of $109.90/bbl, up by $1.12/bbl.

August NYMEX light sweet crude futures were trading at $93.47/bbl, up by 58 cents/bbl from the previous close. Earlier, the US benchmark rose to an intra-day high of $93.63/bbl, up by 74 cents/bbl.

Crude prices continued to strengthen, after rising by more than $2/bbl on Tuesday, buoyed by falling US dollar against leading currencies. A softer dollar makes dollar-denominated commodities, like crude, more attractive to international investors.

Meanwhile, the euro was gaining on expectations that the embattled Greek government will be able to pass its fiscal austerity plan through parliament.

Release of €12bn funds – the fifth tranche of bailout package from the European Union (EU) and the International Monetary Fund (IMF) – to Greece is tied to the passage of these measures.

Crude gains were also supported by US inventory data from the American Petroleum Institute (API) showing a larger-than-forecast 2.7m-barrel fall in US crude stocks and unexpected drawdowns in gasoline and distillate inventories.

($1 = €0.70)

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