NYMEX August crude futures settled $1.56 higher at $79.76/barrel Friday, rebounding on news that major European countries had agreed on a growth package of up to Eur130 billion.
ICE August Brent futures settled $1.75 higher at $90.98/b.
In products, NYMEX July RBOB settled 1.98 cents higher at $2.5699/gal, while heating oil futures finished 84 points higher at $2.5337/gal.
News that the leaders of Germany, France, Italy and Spain vowed to support growth Friday by mobilizing up to Eur130 billion (See story, 1529 GMT) sparked a rally in the oil complex.
Considering crude prices have been pushed lower by concerns of an economic slowdown in Europe, Friday's news that EU leaders were agreeing to a growth package could be supportive, Tradition Energy analyst Gene McGillian said.
Still, McGillian attributed the crude rebound primarily to the heavy selling earlier in the week. NYMEX August crude fell a combined $5.83/b on Wednesday and Thursday, while Brent fell $6.53/b.
The EU news "might be a headline grabber," McGillian said, "but we need to walk that dog down the path a little more."
Whether the crude gains will be extended depends on what comes from the June 28-29 EU summit. "Everything is going to depend on next week's summit," he said.
"[Friday's rally] is just a bounce-back from yesterday's total bloodletting" in crude markets, according to Kyle Cooper, owner of IAF Advisors in Houston.
"Equities are up today, but really this is just a bit of a rebound after the onslaught over the past few weeks," he said, adding that the $80/b level for NYMEX front-month crude was, technically, an important psychological floor for traders that follow trends.
The longer crude sits below $80/b on a weekly chart, the longer it's likely to trade that way from a technical standpoint, according to Cooper.
News that the Louisiana Offshore Oil Port will soon evacuate all non-essential workers as a low-pressure weather system moves into the northern Gulf of Mexico was unlikely to push crude higher, according to John Kilduff of Again Capital (See story, 1645 GMT).
"It's barely affected things, given how well we're supplied [with crude oil] right now. It might not make a real difference," he said of the potential tropical storm.
Kilduff attributed the gains in crude to profit-taking ahead of the weekend after Thursday's selloff.
