Oil rises above $91 as Greek polls inspire optimism

PanARMENIAN.Net - Oil prices rose above $91 a barrel Monday, May 28 in Asia as Greek polls suggested pro-austerity parties might win elections next month, raising the likelihood the country will stay in the euro common currency, the Associated Press reported.

Benchmark oil for July delivery was up 76 cents to $91.62 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose 20 cents to settle at $90.86 in New York on Friday.

Brent crude for July delivery was up 76 cents at $107.59 per barrel in London.

Opinion polls published Sunday indicated two parties that favor implementing Greece's bailout programs could be able to form a coalition government. Greek politicians were unable to form a government after an election earlier this month, requiring new elections in June.

Crude has dropped from $106 the first week of May amid fears a chaotic Greek exit from the euro would deepen economic malaise and weaken crude demand in Europe. Easing tensions over Iran nuclear program amid talks between Iran and six world powers have also helped lower oil prices.

Some analysts expect oil will linger near present prices until after the Greek vote, OPEC's quarterly meeting and the next round of Iran nuclear discussions all take place in mid-June.

"Both European debt and Iranian nuclear issues are on something of a hold for another month," Barclays said in a report. "We would not expect the oil market to gain much of a sustained sense of direction" before those events.

Markets in the U.S. will be closed Monday for the Memorial Day holiday.

In other energy trading, heating oil was up 2.3 cents at $2.85 per gallon and gasoline futures added 3.6 cents to $2.86 per gallon. Natural gas fell 15.2 cents at $2.50 per 1,000 cubic feet.