Oil over 82 dollars after EU, IMF agree Irish bailout

New York's main contract, light sweet crude for January delivery, gained 71 cents to 82.69 dollars per barrel. — File Photo

SINGAPORE: Oil prices topped 82 dollars in Asian trade Monday as the euro’s value soared following the agreement of a massive bailout for financially strapped Ireland, analysts said.

New York’s main contract, light sweet crude for January delivery, gained 71 cents to 82.69 dollars per barrel.

Brent North Sea crude for January rose 77 cents to 85.11 dollars. Oil prices followed the euro up as the European Union (EU) and International Monetary Fund (IMF) late Sunday agreed to bail out debt-ridden Ireland to the tune of between 80 and 90 billion euros.


A weaker US currency makes dollar-priced crude cheaper, stimulating demand and leading to higher prices.
“The EU and the IMF have agreed to a bailout plan for Ireland and that has strengthened the euro and as an end result, boosted oil prices,” said Victor Shum, senior principal of Purvin and Gertz energy consultants in Singapore.

The bailout the second emergency rescue within the eurozone this year was aimed at cleaning up Ireland’s devastated banking sector and is “warranted” to protect Europe’s wider economy, EU finance ministers said.
It comes several months after a 110-billion-euro EU-IMF rescue package for Greece.