Oil prices rocket on EU summit deal

World oil prices soared on Friday with traders lauding a $150-billion growth pact pushed through by the European Union after Italy and Spain lifted their opposition to it, analysts said. Brent North Sea crude for delivery in August surged $4.07 to $95.43 a barrel in London afternoon trading. New York's main contract, light sweet crude for August spiked $4.51 to $82.20 a barrel. "The optimistic news from the EU summit spread bullish signs across the oil market as crude oil prices rebounded strongly from recent losses," said Sucden Financial Research analyst Myrto Sokou. Crude markets were rejoicing after Spain and Italy withdrew their opposition to the deal which enabled it to be passed, said Justin Harper, market strategist for IG Markets Singapore. Prices were up "primarily because of the summit and this positive news that came out," he told AFP. "Because the expectations were so low to start with, people really weren't expecting anything to come out of it and we've got some positive development, obviously a lot of money, $150 billion (120 billion euros)," he added. Earlier Italian and Spanish brinkmanship had ignited fears that the two-day summit aimed at paving the way for deeper economic integration and ending the long-running crisis would be derailed. But the two countries were mollified after more than 13 hours of intense talks, said Luxembourg Prime Minister Jean-Claude Juncker, head of the eurogroup finance ministers. Eurozone leaders also agreed to use the bloc's bailout fund to directly support struggling banks and bring down borrowing costs of troubled countries, opening the door to emergency aid for Rome and Madrid. Despite the crude price rally, Harper said things were still looking grim in the eurozone. "I think it's a short term rally, it could fizzle out because people have seen that there's still a lot of infighting between all the different member states," he said. "They're attacking the short-term issues... there's still a lot of issues to be resolved so sadly I think (the rally) can't be sustained."