Greek bailout lifts crude prices in Asia

Crude prices were up in Asian trade today as US equities rallied on news that eurozone leaders had clinched a bailout deal for debt-ridden Greece, analysts said.

New York's main contract, light sweet crude for September delivery, rose 28 cents to USD 99.41 a barrel. Brent North Sea crude for delivery in September gained 23 cents to USD 117.74.

Traders were cheered by a 159 billion euro (USD 229 billion) bailout package agreed upon by eurozone leaders in an emergency meeting late yesterday to rescue Greece and prevent a global debt contagion, analysts said.

"News of a concrete action from European Union leaders on how to help Greece deal with its debt troubles helped push the stock market higher and in turn firmed up crude futures prices," Phillip Futures stated in a report.

The bailout included 109 billion euros in loans from the European Union and International Monetary Fund and 50 billion euros of funding from the private sector.

US stock markets jumped after the bailout was announced, with the Dow Jones Industrial Average surging 152.50 points, or 1.21 per cent, to close at 12,724.41 and the broader S&P 500 climbing 17.96 points, or 1.35 per cent, to 1,343.80.

Separately, the International Energy Agency's declaration yesterday that it was "not now seeking the release of additional" stocks of oil from strategic reserves in oil-consuming countries also "lifted sentiment," Phillip Futures said.