Oil prices rose sharply today mostly boosted by upbeat market sentiment following news that France and Germany pledged to come up with a plan to tackle the euro zone crisis.
US Crude for November delivery rose over 3 percent today to surpass $86 per barrel today, and November Brent crude futures rose $3.01 to $108.89 a barrel by 1740 GMT, adding to gains of 4.5 percent last week, its best weekly performance since July 8.
The comprehensive Europe plan to contain the crisis which has weighed down on commodities recently, especially on oil, will be unveiled in three weeks before the G20 Summit, according to German Chancellor Angela Merkel and French President Nicolas Sarkozy who met over the weekend.
Oil’s gains were part of a wider commodity rally that saw gold prices up more than 2 percent to near its highest in two weeks, while copper notched a fourth day of gains.
Meanwhile, a further boost to oil prices came after shipping sources said all oil tankers leaving from Kuwait, one of the world’s top five oil exporters and a large supplier to Asia, had stopped as a customs union went on strike. The anticipated back log and shortage in oil supplies pushed up prices today.