Europe's weekend vow to take
decisive action on its debt crisis and hopes that the United States' spending
cuts plan will be passed without incident buoyed Asian oil markets Monday,
analysts said.
New York's main contract, light sweet crude for delivery in
November, added 32 cents to $87.12 per barrel in the afternoon.
Brent North Sea crude for delivery in December gained nine
cents to $112.32.
"Oil is moving on the economic outlook and the overall
strength in commodity markets," said Ker Chung Yang, commodity analyst for
Phillip Futures in Singapore.
"Its responding to the better outlook for US economic
growth and speculation that we may be near some sort of resolution to the
eurozone crisis," he told AFP.
The gloomy US economic climate lifted a tad on Sunday when
key Republican leader Eric Cantor said a congressional supercommittee would
reach agreement on $1.5 trillion in government spending cuts by a November 23
deadline.
If a deal is reached before then, the United States can avoid
triggering an automatic $1.2 trillion in cuts evenly distributed between
military and non-military spending, which Pentagon officials warn would damage
US interests.
The discussions had taken place under the shadow of a repeat
of political stonewalling by the Republicans, who earlier in the year withdrew
from talks with Democrats on lifting the US debt ceiling.
Meanwhile, European leaders on Saturday issued promises of
swift and decisive action as soon as next weekend to beat back the region's
debt crisis, which is threatening to drag the world economy back into
recession.
French Finance Minister Francois Baroin and his German
counterpart Wolfgang Schaeuble issued strident statements of intent following a
meeting of G20 finance ministers and central bankers in Paris.
"The results of the October 23 summit will be
decisive," Baroin said. "We are acting resolutely to maintain
financial stability."
Source : AFP
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