Oil reaches two week high on back of bailout

OIL rose to a two-week high yesterday on the back of the Irish financial rescue. However, persisting worries about the health of other Eurozone members trimmed some of the gains later.

Worries that a spreading crisis within the Eurozone would keep a lid on growth and hence energy demand have helped pressure commodities prices over the last week, pulling down oil from a two year high of $88.63 on 11 November. US crude for January traded one per cent up to $84.59 a barrel after rising 1.5 per cent to a high of $85.03 earlier.