Crude oil futures gain on Cyprus bailout deal

25 March 2013 15:01  [Source: ICIS news]

LONDON (ICIS)--Crude oil futures gained more than $1.00/bbl on Monday after Cyprus reached a last-minute €10bn ($13bn) bailout deal that will prevent its banking system from collapsing.

By 14:05 GMT, the front-month May NYMEX WTI contract touched an intra-day high at $95.34/bbl, a gain of $1.63/bbl compared with the settlement on Friday. The contract then edged lower to trade around $95.25/bbl.

At the same time the front-month May ICE Brent contract was trading around $108.85/bbl, having touched an intra-day high earlier at $108.95/bbl, a gain of $1.29/bbl compared with the previous settlement.

Cyprus managed to secure continued bailout funding from international lenders and avoided a meltdown of its financial sector. However, the deal with the European Union, the European Central Bank and the International Monetary Fund will lead to the closure of the country’s second largest bank, Laiki (Popular Bank).

The deal will not hit depositors with less than €100,000. However, account holders with savings of more than this threshold, that are not guaranteed under EU law, could suffer heavy losses.

By: Kawai Wong
+44 20 8652 3214

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