Reuters

Reuters

Oil jumps to near $92 after Europe debt plan

Oil jumps to near $92 after Europe debt plan

Singapore: Oil prices jumped to near $92 a barrel Thursday in Asia after European leaders agreed on a plan to reduce Greece’s debt burden. Benchmark crude for December delivery was up $1.60 at $91.80 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange.

Reuters

The plan will require banks to take on 50% losses on their Greek bond holdings. Van Rompuy also said the eurozone and International Monetary Fund will give Greece another €100 billion ($140 billion).

Investors cheered the accord as a first step toward containing Europe’s sovereign debt crisis. The Dow Jones industrial average gained 1.4% on Wednesday and stock markets in Asia rose Thursday.

Crude has jumped about 21% from $75 on 4 October amid growing investor optimism that the US economy will avoid a recession this year. In other Nymex trading, heating oil rose 0.4 cents to $3.06 per gallon and gasoline futures gained 0.6 cents at $2.68 per gallon. Natural gas advanced 0.9 cents at $3.67 per 1,000 cubic feet.

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