West Texas Intermediate crude advanced to the highest level in almost a month after European policy makers signaled flexibility on the application of an unprecedented bank tax in Cyprus.
Futures rose for a third day as European officials said Cyprus could ease the cost of the bank-savings levy to small depositors. Outrage over the tax threatened to derail a bailout and worsen Europe’s debt crisis. It sent crude down 1.8 percent in intraday trading before the rebound. The Dow Jones Industrial Average trimmed a 100-point loss and the euro reduced a decline against the dollar. Oil also gained after failing to sustain a move below its 100- and 200-day moving averages.
“It’s not the end of the world for Europe,” said Tariq Zahir, a New York-based commodity fund manager at Tyche Capital Advisors. “People are waiting to see how it plays out. The equity market has come back pretty strong and the dollar is off its highs.”
Read all : http://www.bloomberg.com/news/2013-03-18/wti-drops-from-three-week-high-on-cyprus-crisis.html
