Heating oil up after EU bailout

10 May 2010

Written by Kim Bardsley

Heating oil and crude were up this morning (May 10th), recovering after losses totalling 13 per cent last week.

The commodities plunged for five consecutive days last week as Greece edged closer to bankruptcy and riots spread throughout the country.

However, towards the end of the week there was hope that EU finance ministers would be able to agree on a record bailout deal for the entire eurozone economy.

After long negotiations, a €750 billion finance deal was announced in the early hours of the morning, helping to calm anxious commodities, currency and stock markets.

The euro also slumped alongside crude and heating oil last week but has this morning recorded strong gains against all major competitors.

Speaking to Bloomberg, Tetsu Emori, a commodity fund manager with Astmax in Tokyo, commented: "People have been selling risky assets for the past several weeks because of the Greek debts. The people that were selling off are now buying back."

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