Oil rallies to $94 on eurozone plans

On the way back up: Crude rates recover some lost ground but remain on course for biggest three-month drop in nearly four years

Master isolated images/freedigitalphotos.net

Bill Lehane

 29 June 2012 15:27 GMT

Oil rallied together with other commodities and the euro on Friday, rising by $3 a barrel on foot of a new EU strategy to tackle soaring borrowing costs in Italy and Spain.

Nonetheless crude was still set for its deepest quarterly loss since 2008.

Eurozone leaders agreed to bend their aid rules to shore up banks and bring down the borrowing costs of stricken members, in a sign the bloc is adopting a more flexible approach to solving its two-year old debt woes.

"I think the expectation was it would take the EU most of the weekend to reach an agreement, so I think this has taken the market a bit by surprise," said Thorbjoern Bak Jensen, oil analyst at Global Risk Management.

Some consolidation was to be expected after the oil…

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login

Upstream share price index