London - Arabstoday
Oil jumped to $112 (Dh411.32) a barrel yesterday as a deal with private holders of Greek debt and supportive US data eased concerns that economic weakness could curb energy demand. Euro zone leaders struck a deal with private banks and insurers yesterday for them to accept a 50 per cent loss on their Greek government bonds under a plan to lower Greece\'s debt burden and try to contain the euro zone crisis. At 1351 GMT, Brent crude was up $3.06 at $111.97 a barrel, after touching a high of $112.39 earlier. US crude gained $2.60 to $92.80, down from an intraday high of $93.73. \"There\'s a risk-on mood in the market, despite yesterday\'s rather bearish inventory report,\" said Carsten Fritsch, analyst at Commerzbank. Brent pushed through two technical resistance levels — the 100-day moving average at $111.54 and the 200-day average of $112.25. A close above those points could add further impetus to the upward move. Crude had fallen on Wednesday, with US oil sliding 3 per cent, because of a rise in US inventories and on caution about Europe\'s ability to agree on a plan to address the debt crisis. European shares extended gains yesterday, the euro rose and, as concerns of a near-term default eased, the cost of insuring Greek debt against default also fell. \"The macro event and the financial markets are leading and oil futures are reacting even though the crude inventories in the US have increased substantially,\" said Victor Shum of Purvin & Gertz. US crude stockpiles rose 4.74 million barrels, the US government\'s Energy Information Administration said on Wednesday, more than analysts expected. Still, other figures from the US provided a more positive picture of prospects for the world\'s largest economy and oil consumer. The US economy grew at its fastest pace in a year in the third quarter as consumers and businesses stepped up spending, creating momentum that could carry into the final three months of the year.