AFP reported that oil prices firmed ahead of the weekly snapshot of US energy inventories and amid hopes that Greek lawmakers will vote to approve austerity measures that are needed to avert default. New York's main contract, West Texas Intermediate for delivery in August, gained 59 cents to USD 93.48 per barrel after soaring USD 2.28. Brent North Sea crude for August climbed 55 cents to USD 109.33 in early London trade after leaping USD 2.79 the day before. Lawmakers in Athens are expected to vote later Wednesday on austerity measures demanded by international creditors in exchange for the money that Greece urgently needs to avoid default. The oil market had rallied on Tuesday as traders took their cue from buoyant stock markets and signs that Europe would hash out a deal to defuse the Greek debt crisis. Investors are on edge about a potential Greek default that could shatter confidence, send shockwaves across global financial markets and slash demand for energy. The market also eyed stormy weather in the Gulf of Mexico, where many energy installations are based and reports of falling crude stockpiles in the United States. Mr Andrew Matharu analyst of Westhouse Securities said that "Oil prices were higher yesterday, as investors awaited the outcome of voting on a package of measures in Greece, which would enable the country to avoid default. In addition the Gulf of Mexico has seen its first tropical storm of this year's hurricane season and after hours, the API reported 2.7 million barrel drop in crude supplies ahead of expectations."

Source