Oil prices leaped in Asian trade today with traders cheered by a eurozone agreement to bail out Spain's beleaguered banks and easing Chinese inflation.
New York's main contract, light sweet crude for delivery in July, soared 2.51%, or $2.11, to $86.21 per barrel in morning trade. Brent North Sea crude for July delivery added 2.67%, or $2.66, to $102.13.
Justin Harper, market strategist for IG Markets Singapore, said the market "saw a huge boost...After weekend news that Spanish banks were bailed out by the EU and Chinese inflation eased."
"Oil rose its most in five months having been battered recently by eurozone woes, increased supply, rising stockpiles and threats of weaker global demand," he stated in a report.
The crude rally mirrored that of the euro, which rose after the 17-nation eurozone agreed to lend Spain up to 100 billion euros ($125 billion) to rescue its battered banks.
Numbers released on Saturday showed China's inflation easing to 3.0% in May.
