Oil higher on Greek developments

Singapore, Nov 7: Oil was higher in Asian trade today (Nov 7) on hopes that Greece's plans to form a unity government would resolve the country's debt woes, analysts said. New York's main contract, light sweet crude for December delivery was 24 cents higher at USD 94.50 a barrel and Brent North Sea oil for December delivery advanced USD 1.31 to USD 113.28.

"We are seeing a positive turn in the oil markets," said Michael McCarthy, chief market strategist with Sydney-based stockbroking firm CMC Markets. "To some extent, we are seeing cautious optimism that they (Greece) will elect a new leader tonight," he told AFP.

A new leader and cabinet to keep the country in the eurozone will be named today after talks between outgoing Prime Minister George Papandreou and the conservative opposition chief Antonis Samaras, a government spokesman said.

A historic power-sharing deal was reached in dramatic late-night talks yesterday after Papandreou crucially agreed to step down, removing a key stumbling block hours before jittery financial markets reopened with the euro in the line of fire.

The Greek accord came just ahead of a key eurozone finance ministers meeting today to discuss whether to release an eight billion euro (USD 11 billion) slice of bailout cash that Finance Minister Evangelos Venizelos says is needed by December 15 to keep the country afloat. Yesterday's dramatic events capped a week that has been tumultuous even by the recent standards of Greece, which finds itself trapped in the eye of the eurozone debt storm.

AFP