Oil prices get over fears of Europe debt crisis
Oil prices rose to nearly $71 a barrel in Asia today after worries that Europe's debt crisis could stall the global economic recovery caused a two-week 20% sell-off.
Benchmark crude for June delivery was up 60 cents to $70.68 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. In London, Brent crude for July contact was up 70 cents to $75.80 on the ICE futures exchange.
Crude has plummeted from $87.15 a barrel on May 3 as investors raised concerns that deep government spending cuts and spiralling higher debt obligations may choke off economic growth and oil demand.
A 750 million bailout package announced last week by the European Union and International Monetary Fund has failed to assuage worries, and the euro dropped to a four-year low yesterday.
"Sentiment in the market has been so bearish that you can't rule out a further fall," said David Moore, commodity strategist at Commonwealth Bank of Australia. "The markets are spooked by developments in Europe."
