US crude futures rose more than $1.50 per barrel in early Asian trade on Monday on optimism about the euro zone debt after Germany and France explored radical methods of securing deeper and more rapid fiscal integration among the bloc.
On the New York Mercantile Exchange, January crude gained $1.49 at $98.26 a barrel.
ICE Brent January crude rose 89 cents at $107.29 a barrel as of 0009 GMT.
Germany and France sought to push for fiscal integration in the euro zone, aware that getting broad backing for the necessary treaty changes may not be possible, officials say.
Euro zone finance ministers will meet on Tuesday where detailed operational rules for the euro zone’s bailout fund are ready for approval, documents obtained by Reuters showed.
In Italy, Prime Minister Mario Monti faces a testing week seeking to shore up the country’s strained public finances, with an IMF mission expected in Rome and market pressure building to a point where outside help may be needed to stem a full-scale debt emergency.
The euro was swept higher by a wave of short covering in thin trade early in Asia on Monday on hopes yet again that European officials would take a major step towards resolving the euro zone debt crisis this week.
Japan’s benchmark Nikkei average opened up 1.35 percent at 8,269.91 on Monday, while the broader Topix gained 1.06 percent to 714.09.
US stocks posted seven straight sessions of losses on Friday, ending the worst week in two months, as the lack of a credible solution to Europe’s debt crisis kept investors away from risky assets.
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