Oil prices in the global markets have hit a new high as Brent crude rose above USD 116.67 per barrel after a German bank decided to back a eurozone bailout fund.
On Wednesday, London Brent crude for October delivery, due to expire on Thursday, increased 92 cents to settle at USD 116.48 per barrel, its highest record this months.
Meanwhile, US crude for October delivery gained 53 cents to USD 97.70 a barrel. Germany’s Constitutional Court in Karlsruhe said earlier in the day that Berlin could ratify the eurozone’s new rescue fund and budget pact, European Stability Mechanism, as long as both houses of the German parliament had responsibility for monitoring the fund.
“I think it should be seen as a positive step in the long road to solving the eurozone debt crisis. I think markets will be relatively pleased with the announcement, and the conditions put in place,” said Henk Potts, market analyst at Barclays Wealth.
Recently-announced weak US economic data and Moody’s Investors Service warning of a potential US credit rating downgrade are among other factors that pushed the prices higher.