Oil Advances to 3-Month High Before Europe Debt Meetings
Oil climbed to the highest in three months in New York as speculation European leaders meeting this week will make progress on the region’s debt crisis supported prices against forecasts of rising supply in the U.S.
Futures surpassed $97 a barrel for the first time since May 11. European leaders will hold meetings in Greece and Germany this week. U.S. oil supplies probably gained for the first time in about a month as imports increased and demand fell from a nine-month high, a Bloomberg survey showed before an Energy Department report tomorrow. Crude is trading close to its 200- day moving average.
“At the moment, signs for a Euro zone solution are positive,” said Guy Wolf, a strategist at London-based commodities broker Marex Spectron Group Ltd. “But we’ve been here before with Europe and converting intentions into actions has been too much for them. Oil supply has been tightening, but the demand environment is extremely poor.”