Oil lingers near $90 as ECB moves awaited

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BANGKOK (AP) — Oil lingered near $90 a barrel Tuesday in Asia as investors wait to see if European finance chiefs deliver on bold talk of saving the euro.

Benchmark crude was up 1 cent at $89.79 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell 35 cents to $89.78 on Monday in New York. Brent crude was down 14 cents at $106.06 on the ICE futures exchange in London.

Oil has climbed after last week's vow from European Central Bank chief Mario Draghi to do whatever it takes to keep the euro common currency intact.

Similar remarks from the leaders of France and Germany have created a chorus of support for the beleaguered euro, which was facing a new challenge to its existence as a surge in Spain's borrowing costs raised the prospect that one of Europe's biggest economies could ask for a bailout.

The ECB meets Thursday and expectations are high that Draghi will announce that the central bank plans to resume purchases of government bonds to lower borrowing costs of financially troubled European countries as well as take other steps.

Such announcements could push the price of higher oil. It has fallen from about $106 a barrel nearly three months ago as Europe's debt crisis dragged on the global economy and China's growth slowed, reducing demand for crude.

In other energy futures trading, gasoline was down 1 cent at $2.81 a gallon and heating oil fell 0.8 percent to $2.87 a gallon. Natural gas rose 0.4 cent to $3.218 per 1,000 cubic feet.