Oil rose for a second day in New York, reversing losses as European leaders pressured Greece into proceeding with a rescue package that may stem the region’s debt crisis.
West Texas Intermediate futures on the New York Mercantile Exchange rebounded after dropping as much as 1.8 percent. Led by Germany and France, Europe’s economic and political anchors, the euro’s guardians yesterday cut off financial aid for Greece until an early December vote determines whether it deserves a fresh batch of loans.
“Market sentiment about the success of the rescue package seems to change within hours,” said Carsten Fritsch, a Frankfurt-based analyst at Commerzbank AG, who forecasts Brent crude oil will average $100 a barrel this quarter. “We expect Europe to slip into recession, but it will be just a brief and shallow one.”
Crude for December delivery was up 39 cents at $92.90 in electronic trading on the New York Mercantile Exchange at 10:59 a.m. London time. It earlier fell as much as $1.64 to $90.87 a barrel.
Brent for December settlement traded 30 cents higher at $109.64 a barrel on the London-based ICE Futures Europe exchange. Brent’s premium to New York crude was $16.74 a barrel, compared with settlements of $16.83 yesterday and a record-high $27.88 on Oct. 14.
U.S. crude supplies increased 1.83 million barrels to 339.5 million in the week ended Oct. 28, the U.S. Energy Department said yesterday. That was more than the 1 million barrels forecast by analysts in a Bloomberg News survey.