Reply #2: Oil above $82 as recession worries fade for now

[Pale Blue Dot]

BANGKOK – Oil prices inched higher Friday as recession alarm bells quieted following a glimmer of positive U.S. economic news and steps in Europe toward controlling its debt crisis.

Benchmark crude was up 35 cents to $82.50 per barrel at midafternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 93 cents to close at $82.14 per barrel in New York.

German lawmakers took a major step toward dealing with Europe's debt crisis Thursday by strengthening a bailout fund for financially strapped countries. That eased worries about Greece, which only has enough money to pay its bills through mid-October.

The country risks a massive default on its debts, an event that could spiral into a financial and banking crisis across the continent. Some experts say a Greek default could lead to a global recession, thus hurting demand for oil.

http://old.news.yahoo.com/s/ap/oil_prices