Oil Prices Surge After Greek Parliament’s Approval of Austerity Deal
Greek parliament has passed new austerity deal, while facing crisis in the country, to protect bailout and to move away from bankruptcy. This deal would help the country to get funds, which could reach up to $170 billion (€130 billion), from European partners and the International Monetary Fund. Country needs international funds before March 20 to meet the needs of 14.5 billion euros of debt repayments.
Oil prices rose above 99$ on Monday in Asia after the approval of new deal. Brent Crude rose by 85 cents to $117.60 a barrel on the ICE Futures Exchange in London while Benchmark crude rose by 58 cents to $99.25 a barrel at midmorning Singapore time in electronic trading on the New York Mercantile Exchange.
Along with oil prices, many different portions of financial market such as Asian shares and base metals to gold have also been elevated.
“To be bullish from here, one would need to believe a supply disruption is coming,” Morgan Stanley said in a report. “With fundamentals weakening, we believe that any further upside is unlikely without a supply shock.”
However, the International News Agency (IEA) has announced on Friday that global oil demand will likely grow by less than 1% this year.
Source: The Washington Post
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