Growing optimism in the talks between European leaders has given a boost to oil futures, as worries about the region's economic future subside, according to Bloomberg.
Lawmakers in Europe, particularly from the region's two largest economies of Germany and France, have been engaged for weeks in negotiations to expand the European Financial Stability Facility.
Established as part of an earlier round of bailouts, European leaders now hope to use it to protect financial systems from the ongoing instability in Greece and elsewhere in the euro zone. With the recent release of a draft that would expand the fund as much as 10 percent oil futures saw an increase of as much as 1.2 percent.
"If the EU manages to draw up the lines of a support package large enough to rebuild the trust of the market we expect oil prices to move up," Thina Saltvedt, an analyst at Nordea Bank AB in Oslo, told Bloomberg.
Though the recent news has proven positive for the global economy and the outlook for oil, The Wall Street Journal reports that prospects for the US economy remain unclear. As the world's largest economy, this uncertainty limits any gains made by oil.
At 10:11 a.m. on Thursday, brent crude oil futures increased 1.35 percent, a $1.46 increase to $109.85 per barrel.
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