Benchmark oil for August delivery was up $1.60 at $79.29 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $2.52 to settle at $77.69, the lowest close since October, in New York on Thursday.
Policymakers said at an E.U. summit early Friday that they would create a unified bank supervisory board and allow a rescue fund to recapitalize Spain’s banks without boosting government debt.
Before the summit, analysts hadn’t expected any significant policy announcements, so investors reacted with optimism Friday that the EU may be taking steps toward solving its debt and economic woes.
Crude has plunged from $106 early last month amid expectations that weak global economic growth will reduce demand for oil.