Brent crude oil gained modestly on Wednesday morning as investors remained hopeful that the US Federal Reserve would continue its stimulus plan and European Union leaders would reach a deal with Cyprus regarding the conditions of its bailout.
The commodity traded at $108.07 at 10:40 GMT on Wednesday morning.
According to CNBC, the US Federal Reserve is expected to continue its $85 billion bond buying stimulus plan until the US economy is well on its way to recovery.
Despite a heated debate about the risks of continuing on its current path, Chairman Ben Bernanke has made it clear he feels the costs of doing nothing are more dangerous.
In the Eurozone, Cypriot leaders rejected the European Union's recent terms for a much needed bailout. When put to a vote, the plan didn't have a single supporter in Cyprus' parliament which caused many to worry that the nation's worsening situation could impact the entire region negatively.
In order to secure funding from the EU, Cypriot leaders would have to raise 5.8 billion euros by imposing a levy on banks that would tax large accounts up to 10 percent.
The bailout terms, wildly unpopular around the globe because of their potential to set a precedent for future financing issues, are the first to be rejected since the first bailout three years ago.
Now Cyprus is in talks with Russian leaders to secure financing and keep from spiraling into a financial meltdown. Cypriot leaders are also working with eurozone finance ministers to revise the terms to make them more palatable for the nation's parliament, which will ultimately make the decision to agree to the terms.
Although the European Central Bank has threatened to stop financing the tiny island nation unless it agrees to a bailout plan, most are expecting a last minute deal in the coming days.
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