As markets energize again, oil prices soar
World oil prices soared on Tuesday, mirroring the performance of global equities, as markets followed eurozone debt developments closely.
Brent North Sea crude for delivery in November jumped $1.59 to $105.53 a barrel in London midday deals.
New York’s main contract, West Texas Intermediate (WTI) for November, rallied $2.18 to $82.42.
“Oil prices have recovered quite a bit,” said Commerzbank analyst Carsten Fritsch.
“The main reasons are a change of sentiment on financial markets, reflected in rising equity markets and a somewhat weaker US dollar.
“The downside risks for the economy and oil demand have not disappeared overnight, so a renewed price fall cannot be ruled out,” he added.
Greek Prime Minister George Papandreou was to meet German Chancellor Angela Merkel for talks Tuesday on containing a eurozone debt crisis which US President Barack Obama said is scaring the world.
Stock markets around the globe rallied sharply on hopes European leaders would finally get a grip on the long-running crisis threatening the euro project, even if analysts cautioned such euphoria could prove short-lived.