European debt deal pushes oil up

An oil rig is shown in this file photo.

An oil rig is shown in this file photo.

Published Jun 29, 2012

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The price of oil is soaring after European leaders rolled out new measures to support their beleaguered economy.

Benchmark US crude jumped $3.91, or 5 percent, Friday morning to $81.61 per barrel in New York. Brent crude rose by $4.09, or 4.5 percent, to $95.45 per barrel in London.

Major stock markets also jumped nearly 2 percent in morning trading.

Oil surged after eurozone leaders agreed to pump bailout money directly into banks instead of onto the balance sheets of already stressed governments. The decision eased fears of widespread European bank failures that could have hampered lending in other parts of the world. - Sapa-AP

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