06 June 2012 15:30 [Source: ICIS news]
LONDON (ICIS)--Crude prices extended gains to more than $2.00/bbl on Wednesday to take Brent crude on ICE Futures above $101.00/bbl as the euro gained against the US dollar in the currency markets on optimism that Europe was making the right moves to help the Spanish banking system.
The European Central Bank (ECB) announced that it was leaving interest rates unchanged, boosting investor confidence that it would now signal further monetary stimulus.
A larger-than-forecast draw on crude stocks in the data issued on Tuesday by the American Petroleum Institute (API) also gave support, although it remained to be seen whether this would be echoed in the data from the Energy Information Administration (EIA).
By 14:00 GMT, July Brent crude had hit a high of $101.23/bbl, a gain of $2.39/bbl from Tuesday’s close of $98.84/bbl, before easing back to around $101.11/bbl.
At the same time, July NYMEX light sweet crude futures were trading around $86.00bbl, having hit a high of $86.16/bbl, a gain of $1.87/bbl from the previous close of $84.29/bbl.
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