SINGAPORE (Dow Jones)--Crude-oil futures rallied in Asia Tuesday along with commodities and regional equity markets amid hopes of a resolution to the euro-zone debt crisis.
Crude rose more than 2% on signs European policy makers were making progress to stabilize the region's debt crisis. But traders remained cautious as optimism over the European crisis in recent weeks has often been fleeting, leaving markets to resume their downward spiral.
"Oil prices continue to be influenced by the same climate of economic fear that is battering all other asset classes, creating a cascading effect involving technical triggers and a disregard for the underlying fundamentals," Barclays Capital analysts said in a note.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at $82.10 a barrel at 0716 GMT, up $1.86 in the Globex electronic session as investors appeared to be hunting for bargains. November Brent crude on London's ICE Futures exchange rose $1.32 to $105.26 a barrel.
Nymex prompt crude prices on Tuesday were nearly $5 a barrel higher than their Monday intraday low, reflecting the wild swings that have spooked investors amid the ongoing market turmoil.
European Central Bank executive board member Lorenzo Bini Smaghi told a conference in New York Monday that euro-zone policy makers are already looking at ways to increase the capabilities of the European Financial Stability Facility, to quell market fears of contagion within the bloc.
Bini Smaghi said increasing the financial firepower of the EFSF along the lines of schemes used in the U.S. during the 2008 financial meltdown was already being examined.
"There's also the possibility that growing support for European governments from the euro zone could create an increase in risk appetite," said Tom Pawlicki at MF Global.
Nymex reformulated gasoline blendstock for October--the benchmark gasoline contract--rose 436 points to $2.6130 a gallon, while October heating oil traded at $2.8250, 335 points higher.
ICE gasoil for October changed hands at $896.25 a metric ton, up $5.75 from Monday's settlement.
-By Gurdeep Singh, Dow Jones Newswires; 65-6415 4064; gurdeep.singh@dowjones.com
