Forexpros – Crude oil futures rose to a three-month on Tuesday, ahead of a critical Italian parliamentary vote later in the day, while the prospect of a supply disruption from Iran also lent support.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at USD96.53 a barrel during European morning trade, climbing 1.05%.
It earlier rose by as much as 1.12% to trade at USD96.59 a barrel, the highest price since August 2.
Italian Prime Minister Silvio Berlusconi’s government faces a key parliamentary vote later in the day, amid growing opposition from within his own political party. Berlusconi resisted calls to resign on Monday, as Italian borrowing costs surged to euro-lifetime highs.
In Greece officials were to announce the new head of an interim government later in the day, as efforts continued to avert an imminent default by implementing a new bailout program.
Also Tuesday, finance ministers from the European Union member states were to meet in Brussels to discuss the region’s ongoing financial crisis.
Meanwhile, oil traders were awaiting the release of the United Nations’ International Atomic Energy Agency report tentatively scheduled to be published either on Tuesday or Wednesday.
The report is expected to show Iran’s nuclear program is being geared toward military purposes, which could prompt the U.N. to impose new sanctions on Tehran, including on oil exports.
Iran is the world’s fourth largest crude oil producer and the second biggest exporter among OPEC members. The country has the capability to produce approximately 3.7 million barrels of oil a day.
Commodity markets were also eyeing Wednesday’s release of monthly inflation data from China. Price increases are expected to ease, reinforcing expectations that Beijing will refrain in the near term from monetary tightening.
China is the world’s second largest consumer after the U.S. and has been the engine of strengthening demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery rose 0.98% to trade at USD115.69 a barrel, with the spread between the Brent and crude contracts widening to USD19.25 a barrel.
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