The price of Brent oil is heading north again, nearing $112 a barrel in trading as stock markets in Europe see big gains off the back of the latest European debt plans that may build confidence globally that the EU is getting a grip on sovereign debt.
Latest Brent Oil Price
In London, Brent crude oil futures for December 2011 delivery was trading at $111.86 a barrel, 08.05 GMT this morning on the ICE Futures Exchange.
Stock Markets Rise
Stock markets seem to indicate support for the plan and oil prices saw a boost, following the markets higher. The euro strengthened and markets rose in Asian and Europe in reaction to the summit’s results.
“This is good news, but far from crisis over. Particularly on boosting the EFSF we don’t have full disclosure yet of how that is supposed to work, so we are waiting to see the fine print.” says James Ashley, Senior Europe Economist at RBC Capital Markets, London.
“Technically and fundamentally, crude oil prices look good. The essential thing is that Europe delivered. Although there are still a lot of problems left, there was some kind of an outcome that was acceptable to the market.” said Tony Nunan, a risk manager with Mitsubishi Corp, Tokyo.