Brent rises above $118 after Greece bill

Tuesday, 14 February 2012 00:00 - - {{hitsCtrl.values.hits}}

Brent crude rose above $118 on Monday, supported by a weaker dollar and expectations of a revival in demand growth, after Greece approved an austerity bill to secure a second bailout.

Financial markets, from Asian shares and base metals to gold, all rose as the Greek parliament approved the bill. But investors still remain wary the violence that spread across the country may deepen the crisis as Athens still needs to announce further spending cuts.

Front-month Brent crude rose more than $1 to $118.35 and traded at $118.23 by 0224 GMT. The benchmark gained 2.38 percent last week, posting its third straight weekly rise. US crude was up 90 cents at $99.57 a barrel.

The numbers supported the International Energy Agency’s (IEA) view of oil demand growth slowing because of an overall weak global economy. The IEA reduced its forecast last week, in its sixth consecutive monthly cut, by 250,000 barrels per day (bpd) to 800,000 bpd. - Reuters