Crude markets rejoice as oil prices sprint

World oil prices soared on Friday with traders lauding a $150-billion growth pact pushed through by the European Union after Italy and Spain lifted their opposition to it, analysts said.

Brent North Sea crude for delivery in August surged $4.07 to $95.43 a barrel in London afternoon trading.

New York’s main contract, light sweet crude for August spiked $4.51 to $82.20 a barrel.

“The optimistic news from the EU summit spread bullish signs across the oil market as crude oil prices rebounded strongly from recent losses,” said Sucden Financial Research analyst Myrto Sokou.

Crude markets were rejoicing after Spain and Italy withdrew their opposition to the deal which enabled it to be passed, said Justin Harper, market strategist for IG Markets Singapore.

Prices were up “primarily because of the summit and this positive news that came out,” he told AFP.

“Because the expectations were so low to start with, people really weren’t expecting anything to come out of it and we’ve got some positive development, obviously a lot of money, $150 billion (120 billion euros),” he added.

Earlier Italian and Spanish brinkmanship had ignited fears that the two-day summit aimed at paving the way for deeper economic integration and ending the long-running crisis would be derailed.

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