Oil nears $92 after Europe debt plan announcement

Singapore: Oil prices jumped to near $92 a barrel today in Asia after European leaders agreed on a plan to reduce Greece’s debt burden. Benchmark crude for December delivery was up $1.60 at $91.80 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell $2.97, or 3.2 percent, to settle at $90.20 in New York yesterday. Brent crude was up 82 cents at $109.73 a barrel on the ICE Futures Exchange in London. [caption id=“attachment_117691” align=“alignleft” width=“380” caption=“Investors cheered the accord as a first step towards containing Europe’s sovereign debt crisis. Reuters”] [/caption] After a meeting that began yesterday, EU President Herman Van Rompuy said early today that policy-makers struck a deal that will reduce Greece’s debt to 120 percent of its GDP in 2020. The plan will require banks to take on 50 percent losses on their Greek bond holdings. Van Rompuy also said the eurozone and International Monetary Fund will give Greece another €100 billion ($ 140 billion). Investors cheered the accord as a first step towards containing Europe’s sovereign debt crisis. The Dow Jones industrial average gained 1.4 percent yesterday and stock markets in Asia rose today. Crude has jumped about 21 percent from $75 on 4 October amid growing investor optimism that the US economy will avoid a recession this year. In other Nymex trading, heating oil rose 0.4 cents to $3.06 per gallon and gasoline futures gained 0.6 cents at $2.68 per gallon. Natural gas advanced 0.9 cents at $3.67 per 1,000 cubic feet. PTI