Forexpros – Crude oil futures traded higher Friday as euro zone finance ministers meet in Copenhagen to increase rescue funds in an attempt to solve the regions debt crisis, as well as U.S. lawmakers moving to increase sanctions on Iran.
On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD103.23 a barrel during U.S. morning trade, adding 0.44%.
Sparking the oil rally, euro zone leaders are forecast to agree on a rescue fund of about EUR800 billion at the two day Copenhagen meeting starting Friday.
The number includes the EUR500 billion permanent rescue fund plus the existing bailouts for Ireland, Portugal, as well as Greece’s second bailout package.
European leaders are attempting to gain balance between additional rescue funds and opposition from donor countries, such as Germany, in an effort to help the regions struggling economies.
Dampening the worldwide oil bullishness, Prime Minister Mariano Rajoy will announce the most austere budget since before the nation’s return to democracy in 1978. Spain risks a deeper recession in an attempt to avoid suffering from the regions debt crisis.
Adding to the oil positive sentiment, investors are anticipation a U.S. report to indicate increased consumer spending thereby lifting demand for riskier assets.
U.S. consumer purchases climbed 0.6% in February, after a 0.2% gain the previous month, adding to the risk on sentiment.
In other U.S. news, the Iran Energy Sector and Proliferation Sanctions Act was introduced to Congress on Thursday. The bill is the latest in an increasingly aggressive campaign to tighten sanctions aimed at preventing Iran from pursuing its nuclear and missile programs.
Iran’s Foreign Minister Ali Akbar Salehi said Wednesday that renewed nuclear talks between Iran and six world powers are expected to take place on April 13. The six world powers include, the U.S., the U.K., France, Germany, Russia and China. A venue for the talks will be finalized in the coming days.
U.S. President Barack Obama said Sunday that there is still time to resolve the dispute over Iran diplomatically, but that the window is closing.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery gained 0.61% to trade at 123.16 a barrel, with the spread between the Brent and crude contracts standing at USD19.93.
Brent prices rallied over 15% since the start of 2012, as prices have been boosted by supply disruption fears in Iran, South Sudan and the North Sea.
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