Investing.com - Crude oil futures were higher during European morning trade on Tuesday, as sentiment was lifted after euro zone finance ministers reached a deal on new debt targets for Greece, paving the way for the debt-stricken country to receive its next installment of aid.
On the New York Mercantile Exchange, light sweet crude futures for delivery in January traded at USD88.00 a barrel during European morning trade, up 0.3% on the day.
New York-traded oil prices rose by as much as 0.55% earlier in the day to hit a session high of USD88.25 a barrel.
Euro zone finance ministers, the European Central Bank and the International Monetary Fund reached an agreement in a meeting that wrapped up early Tuesday in Brussels to reduce Greece’s debt-reduction target by EUR40 billion to 124% of gross domestic product by 2020.
Other measures included an extension of loan maturities, a cut in the interest rates that Greece is paying on the loans from its international partners, as well as a debt buyback.
Athens was also cleared to receive a much-needed EUR34.4 billion loan installment in December, easing fears over a messy near-term default and potential exit from the euro zone.
Eurogroup Chairman Jean-Claude Juncker said euro zone ministers would formally approve the release of the aid payment on December 13.
However, market players remained cautious as the latest agreement does not offer a fundamental resolution to the euro zone's debt crisis.
Meanwhile, markets participants continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Republicans in the U.S. Congress on Monday called on President Barack Obama to detail long-term spending cuts to help solve the country's fiscal crisis, while holding firm against the income tax rate increases for the wealthy that Democrats seek.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the five weeks left before the January 1 deadline.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for January delivery eased up 0.1% to trade at USD111.00 a barrel, with the spread between the Brent and crude contracts standing at USD23.00 a barrel.
On the New York Mercantile Exchange, light sweet crude futures for delivery in January traded at USD88.00 a barrel during European morning trade, up 0.3% on the day.
New York-traded oil prices rose by as much as 0.55% earlier in the day to hit a session high of USD88.25 a barrel.
Euro zone finance ministers, the European Central Bank and the International Monetary Fund reached an agreement in a meeting that wrapped up early Tuesday in Brussels to reduce Greece’s debt-reduction target by EUR40 billion to 124% of gross domestic product by 2020.
Other measures included an extension of loan maturities, a cut in the interest rates that Greece is paying on the loans from its international partners, as well as a debt buyback.
Athens was also cleared to receive a much-needed EUR34.4 billion loan installment in December, easing fears over a messy near-term default and potential exit from the euro zone.
Eurogroup Chairman Jean-Claude Juncker said euro zone ministers would formally approve the release of the aid payment on December 13.
However, market players remained cautious as the latest agreement does not offer a fundamental resolution to the euro zone's debt crisis.
Meanwhile, markets participants continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Republicans in the U.S. Congress on Monday called on President Barack Obama to detail long-term spending cuts to help solve the country's fiscal crisis, while holding firm against the income tax rate increases for the wealthy that Democrats seek.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the five weeks left before the January 1 deadline.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for January delivery eased up 0.1% to trade at USD111.00 a barrel, with the spread between the Brent and crude contracts standing at USD23.00 a barrel.