Greek bailout lifts crude prices in Asia

Agence France-Presse

Posted at Jul 22 2011 06:55 PM | Updated as of Jul 23 2011 02:55 AM

SINGAPORE - Crude prices were up in Asian trade on Friday as US equities rallied on news that eurozone leaders had clinched a bailout deal for debt-ridden Greece, analysts said.

New York's main contract, light sweet crude for September delivery, rose 47 cents to $99.60 a barrel in the afternoon.

Brent North Sea crude for delivery in September gained 42 cents to $117.93.

Traders were cheered by a 159 billion euro ($229 billion) bailout package agreed upon by eurozone leaders in an emergency meeting late Thursday to rescue Greece and prevent a global debt contagion, analysts said.

"News of a concrete action from European Union leaders on how to help Greece deal with its debt troubles helped push the stock market higher and in turn firmed up crude futures prices," Phillip Futures stated in a report.

The bailout included 109 billion euros in loans from the European Union and International Monetary Fund and 50 billion euros of funding from the private sector.

On Wall Street the Dow surged 1.21% and the broader S&P 500 climbed 1.35%.

Separately, the International Energy Agency's declaration Thursday that it was "not now seeking the release of additional" stocks of oil from strategic reserves in oil-consuming countries also "lifted sentiment," Phillip Futures said.