Tomahawk, WI 11/4/2011 (StreetBeat) – Oil rose its highest in three months in New York as signs that Europe will reach an agreement with Greece on a rescue plan reduced concern economic growth will falter and damp fuel demand.Futures rose as much as 0.9 percent and are poised for a fifth weekly gain, the longest rising streak since April 2009. Greece won’t hold a public vote on a bailout package, Finance Minister Evangelos Venizelos told lawmakers in Athens yesterday. Oil is approaching its 200-day moving average, which is at $94.84 a barrel today, according to data compiled by Bloomberg.
“The euro zone is the risk factor for the oil price,” said Sintje Boie, an analyst at HSH Nordbank in Hamburg, who predicts the price of Brent crude will slide to $105 by year- end. “The uncertainty is high but we don’t expect it will end in a catastrophe. Oil demand is not so bad in the U.S., and growth in Asia is strong.”
Crude for December delivery rose as much as 86 cents to $94.93 a barrel, the highest price since August 2, in electronic trading on the New York Mercantile Exchange. The contract was at $94.77 at 10:57 a.m. London time. Futures are up 1.6 percent this week and 3.7 percent in 2011.
Brent oil for December settlement on the London-based ICE Futures Europe exchange was up $1.07 at $111.90 a barrel. The premium of Brent to New York crude was at $17.13, down from a record-high settlement of $27.88 on Oct. 14.
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