Crude Prices Rise as Germany and France Pledge to Contain Debt Crisis

October 10 00:00 2011

NEW YORK, October 10 ( – The crude futures touched its highest level since end-September on Monday as leaders of France and Germany pledged to contain the sovereign debt crisis.

Oil prices climbed to $84 a barrel on Monday in Asia, Benchmark crude for November delivery rose by 39 cents and settled at $82.98 in New York on Friday. Brent crude rose by 20 cents at $106.08 a barrel on ICE Futures Exchange of London.

The fear of European debt crisis and its contagious effect on global markets was putting the pressure on the investors around the world. On last weekend, German chancellor Angela Merkel and French President Nicolas Sarkozy announced that they will take measures to contain the debt crisis in Europe which strengthen the market sentiments even more.

Commerzbank said in a note: “We do not regard these two factors as either appropriate or sufficient to justify a sustained price recovery and attribute the upward movement more to a countermovement following the severe losses of recent weeks.”