Oil advanced in New York after European leaders agreed on measures to tame a sovereign debt crisis that threatens to slow economic growth and curb demand for commodities.
Futures climbed as much as 2.5 percent after falling 3.2 percent yesterday, the biggest decline this month. Officials in Europe persuaded bondholders to take 50 percent losses on Greek debt and boosted a bailout fund to 1 trillion euros ($1.4 trillion). The Commerce Department may say today the U.S. economy grew at the fastest pace this year in the third quarter. U.S. supplies of fuels such as gasoline, diesel and heating oil fell last week, the Energy Department said yesterday.
“The countries at least showed the will to find a solution to the debt crisis, and the participation of the banking sector in a debt cut is certainly good news for the market,” said Gerrit Zambo, a trader at Bayerische Landesbank in Munich. “The gains in oil are quite limited compared to equities, though, suggesting traders are hesitant to believe that European efforts will bring up oil again.”
Crude for December delivery rose as much as $2.23 to $92.43 a barrel in electronic trading on the New York Mercantile Exchange. It was at $92.18 at 11:01 a.m. London time. Yesterday, the contract declined the most since Sept. 30, losing $2.97 to $90.20. Prices have gained 0.7 percent this year.