Driving the energy commodity higher was optimism about the European Central Bank intervening to address the sovereign debt crisis, which would enhance demand for fuel by encouraging development and growth. An official with a euro zone central bank anonymously said policy makers are set to discuss resuming covered bond purchases next week, which drove crude oil as much as 1.3 percent higher after crude touched its lowest price since August 9.
"There's some talk that the European policy makers are putting together some new measures to ease the region’s debt crisis and that’s making the markets a little more stable," broker Tom Bentz with BNP Paribas Commodity Futures told Bloomberg. "The markets are still worried about the whole economic picture and a Greek default."
At 1:31 p.m. on Monday, crude oil futures gained 0.22 percent, a 23 cent rise to $104.20 per barrel.
Reuters reports optimism spread in Europe about leaders' abilities to control the sovereign debt crisis but markets are due to remain volatile since it remains unclear if leaders' efforts will work.
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