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MTECHTIPS:-Crude soars on news Europe will bail out Spain
Crude oil futures rose in Asian trading on Monday following news that eurozone finance ministers have approved EUR100 billion in financial assistance for Spain to help the country recapitalize its banks.On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD86.44 a barrel on Monday, up 2.79%, off from a session high of USD86.64 and up from an earlier session low of USD85.52.The bailout sparked demand for oil on sentiment that rescue funding will steer both Spain and the European economy as a whole away from further economic decline, which would have crimped oil demand.Oil prices rose even further on sentiment that rescue money flowing into the Spanish financial sector will make its way to commodities markets and push oil and other commodity prices even higher. Meanwhile, prices rose on sentiment that in the U.S., the summer driving season is underway, a time when demand for gasoline rises when more Americans hit the road.Demand for fuels rises in the U.S. during the summer, which pressures crude upward, while refineries switch to costlier warm-weather inputs.
Crude oil futures rose in Asian trading on Monday following news that eurozone finance ministers have approved EUR100 billion in financial assistance for Spain to help the country recapitalize its banks.On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD86.44 a barrel on Monday, up 2.79%, off from a session high of USD86.64 and up from an earlier session low of USD85.52.The bailout sparked demand for oil on sentiment that rescue funding will steer both Spain and the European economy as a whole away from further economic decline, which would have crimped oil demand.Oil prices rose even further on sentiment that rescue money flowing into the Spanish financial sector will make its way to commodities markets and push oil and other commodity prices even higher. Meanwhile, prices rose on sentiment that in the U.S., the summer driving season is underway, a time when demand for gasoline rises when more Americans hit the road.Demand for fuels rises in the U.S. during the summer, which pressures crude upward, while refineries switch to costlier warm-weather inputs.
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