Oil near $95 amid hopes for Greek debt resolution

[June 30, 2011]  BANGKOK (AP) -- Oil hovered below $95 a barrel Thursday in Asia after Greece's approval of a harsh austerity plan eased concerns about a spreading financial crisis in Europe.

Benchmark oil for August delivery was down 27 cents to $94.50 a barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. Crude gained $1.88 to settle at $94.77 on Wednesday.

In London, Brent crude for August delivery was off $1.18 at $112.22 on the ICE Futures exchange.

The dollar lost ground to the euro and other major currencies, which boosted oil as well. Oil, which is priced in dollars, tends to rise as the greenback falls and makes crude cheaper for investors holding other currencies.

Oil has recovered over the last two days from losses sustained since last Thursday, when the 28-nation International Energy Agency said it would make 60 million barrels of crude from emergency stocks available to help lower prices.

It got a boost as Greek lawmakers prepared for and passed financial reforms that were required for the country to receive the next installment of an international aid package. Without that money, the country risks defaulting on its debts.

Crude has dropped from near $115 early last month amid concerns about slowing demand from the U.S. and Europe.

In other Nymex trading in July contracts, heating oil fell 2 cents to $2.90 a gallon and gasoline dropped 1.9 cents to $2.99 gallon. Natural gas futures lost 4 cents to $4.28 per 1,000 cubic feet.

[Associated Press]

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