By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Crude oil futures extended gains in electronic trading Thursday, as European leaders prepared to assemble for a summit targeting the region’s swelling financial crisis.
Crude oil for August delivery CLQ2 +0.41% advanced 85 cents, or 1.1%, to $80.21 a barrel on the New York Mercantile Exchange during Asian hours.
A drop in weekly U.S. supplies combined with upbeat economic data to send oil prices through $80 a barrel in Wednesday’s North American session. Read more on Wednesday's oil session.
Strength carried through into electronic trading in Asia on Thursday, as investors looked ahead to a two-day summit of European leaders in Brussels beginning later in the global trading day.
The globally anticipated event has constrained risk appetite for much of this week, amid pessimism about outcomes likely to be achieved.
“We expect these discussions to draw a roadmap for fiscal, financial and political union, but we do not anticipate any major decisions on concrete short-term measures to reduce market stress beyond what has already been agreed under the European Stability Mechanism,” strategists at Barclays Capital said.
A weaker dollar was also lending support ahead of the EU summit.
The dollar index DXY -0.34% , which measures the U.S. unit against a basket of six currencies, fell to 82.218, from 82.585 in North American trade late Wednesday. Read more on currencies
A softer greenback can encourage investment in crude, as it makes the commodity cheaper to holders of other currencies. Read more on currencies.
Virginia Harrison is a MarketWatch reporter based in Sydney.
