Brent crude up more than $1/bbl on firmer world stock markets

20 April 2012 12:42  [Source: ICIS news]

LONDON (ICIS)--The front-month ICE Brent crude oil futures contract gained more than $1.00/bbl on Friday on the back of firmer global stock markets, but the rise was capped by Spain’s high debt yields.

By 10:55 GMT, the front-month June ICE Brent contract had touched an intra-day high at $119.10/bbl, a gain of $1.10/bbl from the previous close. The contract then edged lower to trade around $118.95/bbl.

At the same time, the front-month May NYMEX WTI contract, which will expire later on Friday, touched an intra-day high at $103.10/bbl, a gain of 83 cents from the close on Thursday. The contract then fell a few cents lower to trade around $103.05/bbl.

Most stock markets around the world were trading in positive territory on Friday, providing a bullish backdrop for investors in the crude oil futures markets.

However, the International Monetary Fund (IMF) chief, Christine Lagarde, opened dialogue in the World Bank Spring meetings by asking nations to contribute to the organisation’s lending capacity to help bailout troubled eurozone nations.

On Thursday, the Spanish government successfully sold €2.5bn ($3.29bn) of debt, but the yields on the 10-year benchmark bonds were sold at high yields of 5.70%, indicating that eurozone sovereign debt problems are far from over.

($1 = €0.76)

By: Kawai Wong
+44 20 8652 3214

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