FXstreet.com (Barcelona) - Crude oil for June delivery is continuing gains made over the previous two sessions, reaching above $86 a barrel at time of writing. If today's late-week rally continues, oil will post a 3rd consecutive monthly gain heading into the summer season with stereotypically higher fuel demand.
Crude is recovering from a sharp fall earlier in the week amid the euro zone sovereign debt crisis. Commodities across the board fell hard with a strengthened US dollar. However fears of debt default and contagion have been eased as of late with ECB and IMF officials meeting in Berlin to discuss a larger than previously thought aid package for Greece amounting to over 120 billion euros over the next 3 years.
As Joseph Wilson of FXstreet reflects, "the Greek government has announced it will carry out another round of austerity measures - a prerequisite Germany had placed in order for the debt-laden European country to secure a bailout. EU and IMF officials have been in intense negotiations with Greece over recent days and various sources point to a final deal on an emergency aid package emerging shortly, maybe even as soon as Friday night. "
