Crude surges on fresh measures to save the eurozone

29 June 2012 16:00  [Source: ICIS news]

LONDON (ICIS)--Crude oil futures extended gains on Friday to more than $4.00/bbl, as eurozone leaders agreed on emergency measures to save the single currency.

By 13:30 GMT, the front-month August NYMEX WTI contract reached an intra-day high of $82.11/bbl, a gain of $4.42/bbl against Thursday’s settlement. The contract then eased a little to trade around $81.95/bbl.

At the same time, the front-month August ICE Brent contract had touched an intra-day high of $95.70/bbl, a gain of $4.34/bbl compared with Thursday’s close. The contract then edged lower to trade around $95.35/bbl.

EU leaders on Thursday announced plans for the creation of a single supervisory body for eurozone banks by the end of the year.

At a two-day summit in Brussels, Belgium, leaders also agreed to allow a scheme to recapitalise financial institutions in the region by tapping rescue funds without adding to government debts. EU leaders also announced plans to intervene on bond markets to support countries facing high and unsustainable bond yields.

In a statement, the EU said: “We affirm that it is imperative to break the vicious circle between banks and sovereigns.”

European chemical stocks also rose further on Friday, in line with financial markets.

At 14:55 GMT, the UK’s FTSE 100 was up by 2.10%, Germany’s DAX had risen by 3.86%, and the CAC 40 in France was up by 4.17%. At the same time, the Dow Jones Euro Stoxx Chemicals index was up by 3.89%, as shares in many of Europe’s major chemical companies rose from the previous close.

Chemical producer BASF’s shares had risen by 2.88%, while fellow Germany-based chemical company Bayer’s shares were trading up by 2.29%.

Switzerland-based Clariant’s shares were trading up by 2.97% from the previous close, France specialty chemical group Arkema's shares were trading 8.79% higher from the previous close, while Norway-based fertilizer producer Yara International's shares were trading up by 1.58% on the previous close.

Additional reporting by Pearl Bantillo and Franco Capaldo

By: Kawai Wong
+44 20 8652 3214

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