Commodity Corner: Oil Up on Greek Optimism

- Commodity Corner: Oil Up on Greek Optimism

Tuesday, June 28, 2011
Rigzone Staff
by Saaniya Bangee

Oil prices rallied Tuesday on a weaker dollar and optimism that Greece's debt crisis would soon be resolved.

Light, sweet crude gained 2.52 percent Tuesday, the biggest one-day gain in nearly six weeks. Despite the violent protests in Athens, investors remain confident that Greece's parliament will pass additional austerity measures. Analysts believe the vote will affect not only the neighboring countries but the entire European Union.

The euro rose against the greenback as fears eased over Greece's debt crisis. A weaker dollar makes the dollar-denominated commodity cheaper for buyers with foreign currencies. However, gains were limited due to an uncertainty in the long-term situation.

After fluctuating between $90.44 and $92.96, crude for August delivery settled at $92.89 a barrel.

In London, Brent crude settled up $2.79 to $108.78 a barrel.

Front-month natural gas advanced 9 cents ending Tuesday's trading session at $4.36 thousand cubic feet. Prices fluctuated between $4.25 and $4.38 on forecasts of above-average temperatures.

Gasoline futures settled at $2.89 a gallon ahead of the July contracts' expiration on Thursday.

Oil & Gas Post

Promote Your Page Too

Commodity Corner: Oil Settles Higher on Greek Bailout Hopes

- Commodity Corner: Oil Settles Higher on Greek Bailout Hopes

Monday, June 20, 2011
Rigzone Staff
by Matthew V. Veazey

Crude oil for July delivery gained 25 cents Monday to settle at $93.26 a barrel.

Monday's increase reflected investors' optimism that the Greek government will be able to broker a debt restructuring deal with the European Union (EU) and the International Monetary Fund (IMF). Eurozone finance ministers met through the weekend to develop a bailout deal to prevent Greece from defaulting on its public debt.

In order to qualify for a loan from the EU and IMF, the Greek government needs to adopt austerity measures. An austerity plan proposed by the ruling Socialist government includes tax hikes, spending cuts, and privatizations. The proposal has generated considerable discontent among the Greek populace.

Crude oil peaked at $93.49 and bottomed out at $91.14 Monday.

Summer officially begins Tuesday in the Northern Hemisphere, but the Upper Midwest and Northeast regions of the U.S. have been experiencing a dearth of scorching temperatures lately. Thanks to these mild conditions and expectations of more of the same, cooling demand has not been higher than normal. July natural gas lost a penny to end the day at $4.32 per thousand cubic feet.

Natural gas traded within a range from $4.28 to $4.38 Monday.

The front-month price for a gallon of gasoline fell four cents to settle at $2.91 Monday. July gasoline fluctuated from $2.90 to $2.95.

Oil & Gas Post

Promote Your Page Too