European Debt Deal Pushes Oil up 5 Pct

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Associated Press + More

By CHRIS KAHN, Associated Press

NEW YORK (AP) — The price of oil is soaring after European leaders rolled out new measures to support their beleaguered economy.

Benchmark U.S. crude jumped $3.91, or 5 percent, Friday to $81.61 per barrel in New York while Brent crude rose by $4.09, or 4.5 percent, to $95.45 per barrel in London.

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Major stock markets also jumped nearly 2 percent in morning trading.

Oil surged after eurozone leaders agreed to pump bailout money directly into banks instead of onto the balance sheets of already stressed governments. The decision eased fears of widespread European bank failures that could have hampered lending in other parts of the world.

Meanwhile, retail gasoline prices fell to $3.353 per gallon in the U.S., the lowest since Jan. 6.

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