Oil prices climbed this evening on hopes that European leaders will agree on measures to save the euro zone economy from its debt crisis.
There were also heightened tensions over Iran, a major exporter of crude
Prices rose as French and German leaders proposed tough new measures for a euro zone treaty that would keep members from overspending. Investors cheered the move, pushing shares and the euro higher.
The price of US crude rose 61 cents to $101.57 a barrel. Brent crude rose 42 cents to $110.10 a barrel in London.
Analysts say a recession may be inevitable in Europe, but the proposal for tighter spending controls, balanced budgets and other measures was viewed as an important step to saving the euro and protecting the economy from widespread bank failures.
