Investing.com - Crude oil futures were up during European morning trade on Tuesday, as hopes for near-term monetary easing by China and ongoing concerns over a disruption to supplies from the Middle East outweighed fears over Spain’s deteriorating financial situation.
On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD91.73 a barrel during European morning trade, climbing 0.96%.
It earlier rose by as much as 1.15% to trade at a session high of USD91.86 a barrel. Prices touched USD89.28 a barrel on May 23, the lowest since November 1.
Hopes for fresh monetary easing by China to boost growth in the world’s second largest economy helped support market sentiment. Speculation for near-term monetary easing has been growing after Beijing pledged to speed up approvals for new infrastructure-related projects last week.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile, oil traders focused on ongoing violence in Syria, after an alleged government attack on the town of Houla killed at least 109 people over the weekend, according to reports.
The United Nations Security Council met on Sunday to discuss unfolding developments that brought a six week cease-fire to an end.
A lack of resolution in talks between Iran and world powers over Tehran’s nuclear program late last week provided further support.
A dispute between Iran and the West intensified over the weekend, after Tehran refused to permit the International Atomic Energy Agency from visiting a nuclear site which is suspected of being used to develop nuclear weapons.
The stand-off between Iran and Western countries dominated sentiment in the oil market for the most part of the fourth quarter of last year as well as the first three months of 2012.
But NYMEX crude prices are off almost 14% in May and have fallen nearly 17.5% since hitting a March 1 intraday peak of USD110.53 a barrel, as concerns lingered over a widening global economic slowdown and as tensions have eased between Iran and Western nations over the country’s nuclear program.
Meanwhile, investors continued to monitor developments surrounding the euro zone’s ongoing debt woes.
The yield on Spain’s 10-year bond rose to 6.52% in early trade on Tuesday, the highest level since November of last year after the government announced that it was to recapitalize one of the country’s largest commercial lenders Bankia.
The announcement fuelled fears that the rising cost of bank rescues could force Madrid into seeking an international bailout.
Speaking Monday, Spanish Prime Minister Mariano Rajoy said Spain was “finding it very difficult to finance itself”, but ruled out the possibility that the country will need a bailout.
There are worries that the region’s sovereign debt crisis could trigger a broader economic slowdown that would curb demand for oil. The euro zone accounted for nearly 12% of global oil consumption in 2010, according to data from British Petroleum.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery rose 0.45% to trade at 107.61 a barrel, with the spread between the Brent and crude contracts standing at USD15.88.
Brent crude, the European benchmark, is nearly 15% off its intraday high of USD128.38 hit on March 1.
A potential loss of Iranian oil supplies has helped underpin strong gains in oil prices during late last year and the first quarter of this year.
But revived talks between Iran and major powers over Tehran's nuclear ambitions, along with rising Saudi Arabian and Libyan output and signs of slower U.S. economic and employment growth, helped pull oil prices back from first-quarter highs.
On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD91.73 a barrel during European morning trade, climbing 0.96%.
It earlier rose by as much as 1.15% to trade at a session high of USD91.86 a barrel. Prices touched USD89.28 a barrel on May 23, the lowest since November 1.
Hopes for fresh monetary easing by China to boost growth in the world’s second largest economy helped support market sentiment. Speculation for near-term monetary easing has been growing after Beijing pledged to speed up approvals for new infrastructure-related projects last week.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile, oil traders focused on ongoing violence in Syria, after an alleged government attack on the town of Houla killed at least 109 people over the weekend, according to reports.
The United Nations Security Council met on Sunday to discuss unfolding developments that brought a six week cease-fire to an end.
A lack of resolution in talks between Iran and world powers over Tehran’s nuclear program late last week provided further support.
A dispute between Iran and the West intensified over the weekend, after Tehran refused to permit the International Atomic Energy Agency from visiting a nuclear site which is suspected of being used to develop nuclear weapons.
The stand-off between Iran and Western countries dominated sentiment in the oil market for the most part of the fourth quarter of last year as well as the first three months of 2012.
But NYMEX crude prices are off almost 14% in May and have fallen nearly 17.5% since hitting a March 1 intraday peak of USD110.53 a barrel, as concerns lingered over a widening global economic slowdown and as tensions have eased between Iran and Western nations over the country’s nuclear program.
Meanwhile, investors continued to monitor developments surrounding the euro zone’s ongoing debt woes.
The yield on Spain’s 10-year bond rose to 6.52% in early trade on Tuesday, the highest level since November of last year after the government announced that it was to recapitalize one of the country’s largest commercial lenders Bankia.
The announcement fuelled fears that the rising cost of bank rescues could force Madrid into seeking an international bailout.
Speaking Monday, Spanish Prime Minister Mariano Rajoy said Spain was “finding it very difficult to finance itself”, but ruled out the possibility that the country will need a bailout.
There are worries that the region’s sovereign debt crisis could trigger a broader economic slowdown that would curb demand for oil. The euro zone accounted for nearly 12% of global oil consumption in 2010, according to data from British Petroleum.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery rose 0.45% to trade at 107.61 a barrel, with the spread between the Brent and crude contracts standing at USD15.88.
Brent crude, the European benchmark, is nearly 15% off its intraday high of USD128.38 hit on March 1.
A potential loss of Iranian oil supplies has helped underpin strong gains in oil prices during late last year and the first quarter of this year.
But revived talks between Iran and major powers over Tehran's nuclear ambitions, along with rising Saudi Arabian and Libyan output and signs of slower U.S. economic and employment growth, helped pull oil prices back from first-quarter highs.