BLBG: Crude Oil Advances to Two-Week High on Greek Bailout, Surge in Commodities
Crude oil climbed to the highest price in more than two weeks in New York after the Greek bailout signaled that global economies may stabilize, boosting fuel demand, and as commodities surged.
Futures rose as much as 2 percent after European finance ministers approved an 8.7 billion-euro ($12.6 billion) aid payment to Greece on July 2. Prices also advanced as the Standard & Poor’s GSCI Index of 24 raw materials increased for the first time in three days.
“The economic outlook looks better and the Greek situation looks significantly improved and is no longer a major concern for people,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “That’s giving people a lot of optimism about the economy in Europe and the U.S.”
Crude for August delivery gained $1.78, or 1.9 percent, to $96.72 a barrel at 9:51 a.m. on the New York Mercantile Exchange. Floor trading was closed yesterday for the U.S. Independence Day holiday and electronic trades will be booked with today’s transactions for settlement purposes. Futures have risen 34 percent in the past year.
Brent oil for August settlement climbed $1.57, or 1.4 percent, to $112.96 a barrel on the ICE Futures Europe exchange.
The S&P GSCI Index jumped 1.5 percent to 674.13, led by silver, wheat and corn.
To contact the reporter on this story: Margot Habiby in Dallas at mhabiby@bloomberg.net.
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.
