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Oil rebounded from the lowest close in almost nine months in New York on speculation that European measures aimed at fighting the region’s debt crisis will spur demand for fuel.
Crude posted its steepest intraday gain in eight months, increasing as much as 4.5 percent and trimming the biggest quarterly decline since the final three months of 2008. Oil gained after euro-area leaders agreed to relax conditions on emergency loans for Spanish banks and possible help for Italy. Prices may advance after the European Union’s ban on the purchase, transport, financing and insurance of Iranian crude starts on July 1, a Bloomberg survey showed. Norway’s first industrywide energy strike since 2004 is in its sixth day.
Oil extended gains after EU President Herman Van Rompuy said European leaders at a summit in Brussels agreed to drop the condition that emergency loans to Spanish banks give their governments preferred creditor status. Banks can also be recapitalized directly with funds rather than going through governments and leaders discussed ways to reduce the risk premiums on Italian and Spanish bonds, he said.
Sixteen of 42 analysts, or 38 percent surveyed by Bloomberg News, forecast New York crude will increase through July 6. Fourteen predicted that futures will decline and 12 said there will be little change in prices.
Oil may rebound to as high as $90 a barrel if prices hold above a support level near $75, according to technical analysis by Rich Ilczyszyn, chief market strategist and founder of Iitrader.com in Chicago.
August futures on U.S. light crude oil WTI (Light Sweet Crude Oil) on the NYMEX today rose $ 4.6 to $ 82.29 a barrel
August futures price for North Sea petroleum mix of mark Brent rose $ 3.39 to $ 95.38 a barrel on the ICE Futures Europe Exchange.