SINGAPORE: Oil prices rebounded Tuesday after eurozone ministers and the International Monetary Fund reached a deal to release fresh loans to debt-ridden Greece.
The agreement eased concerns that Greece's problems could spiral out of control, shaking the global economy and denting oil demand.
New York's main contract, West Texas Intermediate (WTI) for January delivery, bounced 30 cents to $88.04 a barrel in the morning, and Brent North Sea crude, also for January, jumped 29 cents to $111.21.
After marathon talks in Brussels, the eurozone and the IMF agreed to unlock 43.7 billion euros ($56 billion) in loans and grant significant debt relief going forward for decades to come.
"The decision will certainly reduce the uncertainty and strengthen confidence in Europe and in Greece," said European Central Bank President Mario Draghi.
IMF chief Christine Lagarde said the deal would bring Greece's debt back towards a "sustainable" path.
Greece has been at the centre of a raging debt crisis in the eurozone, a major market for exports from developing countries, and there were fears the problem could affect the global financial system if left unresolved.
The deal is also expected to boost the euro single currency, making dollar-priced oil cheaper and supporting demand, leading to higher prices.
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