Oil rises on risk outlook, Spain auction

LONDON: Crude oil prices gained on Thursday, bouncing from a two-month low set the previous session, as a Spanish bond auction attracted strong investor demand, alleviating some concerns about the health of the eurozone economy.

Spain’s Treasury issued 2.5 billion euros ($3.3 billion) in two- and 10-year bonds on Thursday at the top end of the targeted amount, although yields ticked higher than at the previous January auction.

Brent June crude gained 43 cents to $118.40 a barrel at 0811 GMT after hitting $116.70 in the previous session, its lowest in more than two months.

US May crude gained 18 cents to $102.85, after falling more than a dollar in the previous session. The May contract expires on Friday. Some investors saw recent sharp falls as a good buying opportunity.

Revived fears about the eurozone’s shaky finances have contributed to a 3.2 percent fall in the price of Brent this month, raising once again the prospects of economic decline and falling energy demand. To help cushion the impact of a potential European debt crisis, the International Monetary Fund said on Wednesday it had raised $320 billion so far, with Poland and Switzerland joining the effort. The IMF is hoping to secure at least $400 billion. reuters

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