Commodity Corner: Oil Up on Greek Optimism
Oil prices rallied Tuesday on a weaker dollar and optimism that Greece's debt crisis would soon be resolved.
Light, sweet crude gained 2.52 percent Tuesday, the biggest one-day gain in nearly six weeks. Despite the violent protests in Athens, investors remain confident that Greece's parliament will pass additional austerity measures. Analysts believe the vote will affect not only the neighboring countries but the entire European Union.
The euro rose against the greenback as fears eased over Greece's debt crisis. A weaker dollar makes the dollar-denominated commodity cheaper for buyers with foreign currencies. However, gains were limited due to an uncertainty in the long-term situation.
After fluctuating between $90.44 and $92.96, crude for August delivery settled at $92.89 a barrel.
In London, Brent crude settled up $2.79 to $108.78 a barrel.
Front-month natural gas advanced 9 cents ending Tuesday's trading session at $4.36 thousand cubic feet. Prices fluctuated between $4.25 and $4.38 on forecasts of above-average temperatures.
Gasoline futures settled at $2.89 a gallon ahead of the July contracts' expiration on Thursday.