Oil rises above $82 on Europe debt progress hope

AP , Tuesday 27 Sep 2011

Climb for crude reflects optimism finance ministers will take action to stem the region's debt crisis

Oil
Oil rises above $82 (Photo: AP)

Oil rose above $82 a barrel Tuesday in Asia, following stock markets higher amid hopes that Europe was finally girding for a major program to prevent debt-strapped Greece from going bankrupt.

Benchmark oil for November delivery was up US$2 to $82.24 a barrel at midafternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 39 cents to finish at $80.24 per barrel in New York on Monday.

In London, Brent crude for November delivery rose $1.73 at $105.67 on the ICE Futures exchange. Energy prices followed gains in stock markets on optimism that European finance ministers might soon take action to stem the region's sovereign debt crisis.

For weeks, investors have been worried that Europe's problems could lead to another recession, which would cut demand for oil and gasoline.

Demand for gasoline in the U.S. is already below year-ago levels. Analysts were also looking to consumer confidence data expected later Tuesday out of the U.S. for clues on the future strength of demand for fuel. Oil prices have slumped since spring as concern has grown about the global economy, but signs of improving consumer sentiment could boost crude.

"As for today all eyes will likely be on September's consumer confidence index" which is expected to rise to 46.0 from 44.5 in August, energy trader and consultant The Schork Group said in a report.

In other energy trading, heating oil rose 4 cents to $2.84 per gallon, gasoline futures fell 3 cents to $2.53 per gallon and natural gas rose 4 cents to $3.82 per 1,000 cubic feet.

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