Crude Oil Prices Up 5% in Response to Europe's Plans for Debt Management

An optimistic outlook on the ability of European leaders to contain the European debt crisis is responsible for a significant surge in crude oil prices today. Greece winning the release of bailout loans from the International Monetary Fund and the European Union, allowing the country to avoid its impending default, is largely responsible for the investor confidence that caused crude oil to jump to $84.45 a barrel in New York. This 5% increase is the largest gain since May 9 according to Bloomberg Businessweek.

Crude oil prices have reached startling lows this year, and today’s increase indicates hopes that the financial landscape is improving and that energy demand will rise with the economy; however, economists warn that any failures on the part of European leaders to manage their debt as promised could again cause crude oil prices to plummet.