Brent oil price trading at $85, Greece bailout boosts euro

Brent oil price starts the week trading above $85 a barrel as news of an EU backed financial bailout offer for Greece boosts the euro on currency markets. Finance ministers of the eurozone nations agreed Sunday to offer euro 30 billion ($40 billion) in loans to Greece this year if Athens asks for the money.

London Brent crude oil futures for May delivery gained 46 cents in early trading to $85.29 on the ICE Futures Exchange. The new loan offer to Greece by European countries helped weaken the US dollar, making crude oil futures cheaper for investors to buy holding euros.

“We have a perfect recipe today: the news from Greece, Wall Street is positive and investors are encouraged to take risks,” said Chris Weston, a dealer at IG Markets in Sydney.

The size of the rescue plan, which was on the high side of market expectations, eased worries about Greece defaulting on its debt in the near term and creating a domino effect on other countries with deep fiscal problems.

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