Oil Gains on Optimism Europe Will Tame Debt Crisis, Boosting Fuel Demand

Bloomberg reported that oil surged for a second day on speculation Europe will contain its sovereign-debt crisis.

The market news is quoted as saying:

U.S. Treasury Secretary Timothy F. Geithner predicted Europe will intensify efforts to contain its debt problems after being pressured at international meetings in Washington last week. European stocks climbed for a third day.

“It’s a ‘risk-on’ day for oil,” said Thorbjorn Bak Jensen, an analyst at Global Risk Management in Middelfart, Denmark, who predicts Brent will average $107 in the fourth quarter. “Investors are hoping the European Central Bank will pull a rabbit out of the hat, in the form of an increase in the strength of the bond-buying program.”

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