Oil traded near the highest level in a week in New York based on speculation that U.S. and European policy makers will act to boost growth and also on the concern that the unrest in the Middle East may spread and disrupt supplies. The market is riding high on the talk of stimulus and there are also have some geopolitical concerns in the Middle East.
The European Central Bank and the U.S. Federal Reserve are scheduled to discuss the economy separately this week. The Syrian government’s use of “indiscriminate violence” will hasten its collapse, U.S. Defense Secretary Leon Panetta said. The Middle East produces about a third of the world’s crude.
Crude for September delivery was at $90.25 a barrel, up 12 cents, in electronic trading on the New York Mercantile Exchange at 3:04 p.m. Singapore time. It earlier advanced as much as 82 cents, or 0.9 percent, to $90.95 a barrel. The contract climbed 0.8 percent to $90.13 on July 27 for a fourth day of gains and the highest close since July 20. Prices are up 6.2 percent this month.
Brent oil for September settlement was at $106.20 a barrel, down 26 cents, on the London-based ICE Futures Europe exchange. The European benchmark crude was at a $15.95 premium to New York-traded West Texas Intermediate grade. The spread was $16.34 on July 27, the widest since May 22.