Brent crude futures rise $1/bbl on softer dollar, eurozone hopes

12 September 2012 12:56  [Source: ICIS news]

SINGAPORE (ICIS)--Crude futures rose on Wednesday with ICE Brent gaining more than $1/bbl at one stage, supported by a softer US dollar and a decision by a German court in favour of the eurozone rescue fund.

Expectations that the US Federal Reserve will announce further economic stimulus plans this week added further support.

At 11:21 GMT, October Brent crude on London’s ICE futures exchange was trading at $116.32/bbl, up by 92 cents/bbl from the previous close. Earlier, the North Sea benchmark rose to a session high of $116.67/bbl, up by $1.27/bbl.

October NYMEX light sweet crude futures (WTI) were trading at $97.69/bbl, up by 52 cents/bbl from the previous close. Earlier, the US benchmark rose to a session high of $98.06/bbl, up by 89 cents/bbl.

The weaker US dollar made dollar denominated commodities such as crude more attractive to overseas investors.

Germany’s Constitutional Court dismissed injunctions issued to prevent the German ratification of the Eurozone bailout fund, the European Stability Mechanism (ESM) and the European fiscal treaty. However, the court did impose conditions which prevent an increase in payment obligations without German consent.

There are widespread concerns within Germany that the eurozone bailout agreements commit Germany to possibly unlimited liability to support debt ridden economies.

By: James Dennis
+65 6780 4327

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