Oil Higher as Greece Avoids Default
Oil rose in Asian trade Monday after Eurozone finance ministers cleared the way for debt-hit Greece to receive 12 billion Euros by mid-July, analysts said.
In afternoon trade, New York's main contract, West Texas Intermediate for August delivery, rose 12 cents to $95.07 a barrel and Brent North Sea crude for August added 18 cents to $111.95.
A key factor supporting oil prices is the "confirmation that Greece will get the batch of bailout money from the Eurozone," said Victor Shum, a Singapore-based analyst with Purvin and Gertz energy consultancy.
"That has eased concerns about Greece sinking the European region into a downturn," he told Agence France Presse.
Eurozone finance ministers Saturday cleared the way for Athens to receive the next 12-billion-euro tranche of last year's 110-billion-euro ($160 billion) European Union-International Monetary Fund bailout.
But the ministers still need to work on a second rescue package potentially of similar size to ensure Greece can stay afloat until at least 2014, warding off a devastating default that would reverberate across Europe.
European diplomats warn that Eurozone finance chiefs are unlikely to finalize a second bailout at their next meeting on July 11 and that Greece may have to wait until September.
Negotiations for a new rescue are more complex because some governments, especially Germany, want private investors to share the burden by agreeing to voluntarily "roll over" their Greek debt.
Source: Agence France Presse
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