Oil soars to five-month high on Spanish bailout

Oil prices have risen to a five-month high on hopes of stronger demand for fuel following Spain’s request for a European bailout to shore up its troubled banking system.

Crude oil futures rose by nearly 3%, the largest gain since 3 January, up $2.54 to $86.64 a barrel on the New York Mercantile Exchange, according to Bloomberg.

Brent for July settlement rose $2.11 or 2.1% to $101.58 a barrel on the London based ICE Futures Europe Exchange.

This morning Asian stocks and the euro gained following news of the Spanish deal. Eurozone ministers agreed on Saturday to lend Spain up to €100bn to rescue its banks.

News of China’s increased imports of crude oil in the month of May will also have provided a boost to oil markets.

The prices of Brent oil, which is considered a benchmark price for over half the word’s crude, has slumped 21% since March this year as the deterioration of Europe’s debt crisis threatened to curb fuel demand.

 

This article was first published on Investment Week

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