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Crude gains as Cyprus taps bailout funding, messy eurozone exit avoided

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Investing.com - Oil prices rose in U.S. trading on Monday after Cyprus secured EUR10 billion in bailout financing and avoided economic collapse that could have bruised the broader European economy and crimped demand for fuels and energy.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded up 0.48% at USD94.16 a barrel on Monday, off from a session high of USD95.65 and up from an earlier session low of USD93.70.

Earlier Monday, eurozone finance ministers and the International Monetary Fund approved a EUR10 billion rescue package for Cyprus provided the country close up its second-largest lender, Laiki Bank.

The bailout deal guaranteed that accounts holding EUR100,000 or less will continue to be insured and likely shifted to another financial institution, though larger depositors and bondholders in the bank may take haircuts.

While the news rattled nerves in foreign-exchange markets on fears that future bailouts in the eurozone may call for bank restructurings, energy markets applauded the deal on sentiments that European policymakers and Cyprus avoided a financial and economic calamity.

Elsewhere on the ICE Futures Exchange, Brent oil futures for May delivery were down 0.10% at USD107.56 a barrel, up USD13.40 from its U.S. counterpart.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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