As concerns that Europe’s debt crisis will spread and trigger another recession fade, oil prices hover around US$100 per barrel for the first time since the summer. Rising by over a dollar, crude on the Nymex jumped to US$98.9, while Brent crude settled at US$114.1 London.
From levels of about US$77 at the beginning of October, oil is skirting the hundred dollar mark. Two of the market’s biggest fears — the 17-nation eurozone crisis and another recession in USA, have gradually eased. That has reassured investors that demand for oil will likely stay strong. Greece and Italy turned to economists to lead them out of their debt crises. Greece chose Lucas Papademos as prime minister. In Italy, Mario Monti received increasing support to replace outgoing Prime Minister Silvio Berlusconi. Though they continue to face massive financial hurdles, the leadership changes are an indication that Italy and Greece are serious about reducing their debts.