West Texas Intermediate crude traded near the highest price in a week as investors speculated that declines over the past three weeks were excessive. Hedge funds cut bullish bets on WTI by the most in almost two months.
European policy makers signaled flexibility on the application of an unprecedented bank tax in Cyprus, seeking to overcome outrage that threatens to derail the nation’s bailout. European shares and the euro fell.
The cost of insuring against a drop in the dollar versus the yen rose to a four-month high as investors sought havens amid a possible U.S. credit-ratings downgrade and bet the Bank of Japan will struggle to halt gains in its currency.
Oil fluctuated after falling for the first time in four days yesterday in New York as speculation that China will take more steps to boost its economy countered signs of weakening demand in the U.S., the biggest crude user.