Crude oil climbs, awaiting Greece deal

10 February 2010

Written by Neil Brunskill

Crude oil prices gained considerably during trading on the New York Mercantile Exchange yesterday (February 9th) as traders anticipated that the European Central Bank will draw up a bailout package to support Greece and other European economies.

In a statement, the central bank declared that it would extend a safety net to limit the impact of the mounting debt crisis being witnessed in Greece, Spain and Portugal, with incoming European economic affairs commissioner Olli Rehn offering a broad gesture of support for the blighted economies.

Following the announcement, the dollar plummeted against the euro as confidence returned to European markets, which in turn sent crude prices lower as dollar-based commodities became more attractive to foreign buyers.

By the close of trading, crude prices had climbed to $73.75 (£46.95) a barrel, up $1.86, while heating oil prices also breached the $1.90-a-gallon mark to close at $1.9374, up more than five cents on Monday's settle price.

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