Fin24

Oil up on IEA decision, US data, Greece

2011-07-21 17:53

New York -  Oil rose for a third straight session on Thursday, lifted by upbeat US economic data, signs of a deal to bailout Greece and confirmation the International Energy Agency would not release more emergency stocks for now.

The market shook off early losses caused by weak economic data from China and turned positive as euro zone leaders were set to give their financial rescue fund new powers to help Greece overcome its debt crisis, easing concerns that have weighed on oil and other markets in recent weeks.

Further support came from upbeat data showing factory activity in the US Mid-Atlantic region bounced back in July, as well as news members of the IEA decided against releasing more oil stockpiles despite the threat of high prices to the economic recover.

The IEA shocked oil markets in June, announcing it would release 60 million barrels of oil to help replace disruptions of Libyan supply and bring down prices. Prices initially plunged, but in the month since the announcement, Brent prices have climbed back more than $10 a barrel.

Brent traded up 23 cents to $118.38 a barrel at 11:11 a.m. EDT (1522 GMT). US crude rose $1.21 to $99.61 a barrel after topping $100 a barrel for the first time since June 10.