Monday, February 13, 2012

Greece has passed austerity deal affecting oil prices

Greece austerity deal approval has come with a surge in oil prices in Asia. That surge is above $99 on Monday.

Greece has passed that deal in order to get security of bailout and protection from bankruptcy as Greece has to meet 14.5 billion euros of debt repayments before March 20.

Brent crude increased by 85 cents and went to $117.60/barrel in on the ICE Futures Exchange in London. Benchmark crude also went up by 58 cents and went at $99.25/barrel at midmorning Singapore time in electronic trading on the New York Mercantile Exchange.

“The problem is that gasoline prices have recently jumped and this appears to have more than offset the positive developments,” Capital Economics said in a report.

“To be bullish from here, one would need to believe a supply disruption is coming,” Morgan Stanley said in a report. “With fundamentals weakening, we believe that any further upside is unlikely without a supply shock.”

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