Brent oil trading back near $109 on Greek vote hopes

Brent oil prices open today’s trading session back near $109 a barrel as optimism that Greece’s Parliament would pass additional austerity measures help lifted oil prices from four month lows on Tuesday.

Latest Brent Oil Price

In London, Brent crude oil futures for August 2011 delivery was trading at $108.81 a barrel, 06.15 GMT this morning on the ICE Futures Exchange. Brent also gained from a weaker US dollar.

Greece Optimism

Optimism is growing that Greek lawmakers will approve the new harsh measures for Greece’s economy, a condition for another bailout from the eurozone and the IMF. That view boosted oil prices, as the euro advanced over the US dollar and fears of a broader European credit crisis eased.

“The bottom line is nobody is going to let Greece go down. It’s not economically feasible to let that happen.” said Mark Waggoner, president of Excel Futures.

Greek politicians are to vote later today on austerity measures that have sparked nationwide strikes and the worst rioting in Athens for more than year. Greece’s Prime Minister George Papandreou has said that only his 28 billion euro austerity plan will get Greece back on its feet.

If the package is not approved, Greece could run out of money within weeks. Greek officials say that 46 people were injured in the capital on Tuesday, including 37 policemen, after an anti cuts rally turned violent.

It seems that for at least this week, the Greece situation is going to be the main factor driving oil prices and currency markets higher or lower.

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Brent oil trading back near $109 on Greek vote hopes