|News||Crude rises above $85 after the announced Greece aid measures|
|Analysis||Crude gained this morning above $85 per barrel after the euro zone officials agreed on bailout package figures worth 45 billion euros, to help Greece in its financial woes and therefore spreading a wave of optimism across markets.|
Yesterday, the European governments offered debt swamped Greece with a 45 billion euros rescue package ($61 billion) which is again the combination of euro government loans and IMF; the governments are to supply 30 billion euros in three-year loans and in 2010 with 5% interest which is still below the yield on the three-year Greek bond. The remaining 15 billion if needed are to be supplied by the IMF.
The agreement on Sunday forms a clear outline of what the 16 euro zone leaders had reached to throughout the 25th and 26th for last March. However, European countries are that this agreement will ease fears in markets.
The euro versus dollar gained and recorded high levels around 1.3696 this morning, compared to low levels it recorded last Friday around 1.3322; thus, largely playing a role in causing investors to abandon the dollar for other attractive yielding assets, increasing by that demand on commodities.
As for the Asian continent, crude imports rose in China last month by 29% compared to the same period last year, since in the meantime China plays a vital role in supporting global demand levels on crude oil. Meanwhile, more expectations point to China witnessing a faster growth pace compared to other global economies.
Crude opened last Friday around $85.52 recording its highest around $86.35 and lowest around $84.12, while closing around $84.95 per barrel.
The S&P GSCI index closed late last Friday around 542.14 after climbing by 1.41; whereas the RJ/CRB commodity index also rose by 0.88 to close around 276.13.
In NYMEX as of 03:30 EST; motor gasoline futures gained to record $230.430 per gallon by $1.500; heating oil futures are trading around $224.300 per gallon after rising by $1.700; whereas natural gas also gained by $0.006 to record $4.076 per 1000 cubic feet. In London, Brent gained by $0.770 to record $85.600.
Crude opened yesterday around $85.32 recording its highest around $85.67 and lowest around $85.15, where it currently trades around $85.25 per barrel.