Oil rises to about 10 days Trade high on measures of debt Europarade Near 10-D

Oil rose, trading near the highest in 10 days, speculation about the measures to quell the crisis in Europe's debt to help stabilize the economy and stimulate demand for fuel.

The futures rose as much as 0.8 percent after European governments and the International Monetary Fund aid package extended a debt tied Ireland. Prices also rose as North Korea warned his confrontation with South Korea could lead to war. South Korean President Lee Myung Bak, pledged that the country pays for any provocation.

"Today's rising tone seems to be based on a relief rally rescue of Ireland," Serena said Lim, an energy strategist at Australia and New Zealand Banking Group Ltd. in Singapore. "This is adding to positive sentiment in the market."

The January contract rose 70 cents to $ 84.46 a barrel in electronic trading on the New York Mercantile Exchange and was at $ 84.30 at 2:41 pm Mexico time. Prices have risen 6.1 percent this year.

The contract traded at $ 84.53 a barrel on Nov. 26, the highest in ten days, before closing at $ 83.76, up 0.1 percent.

Crude oil rose after the EU gave a ransom of 85 billion euros (113 million dollars) to Ireland and Greece said it could take an additional year of four and a half to pay for emergency loans to match the term of seven years trying to Ireland.

Escalating tension

"Greece and Ireland are now under the direction of the European Union and the IMF and possibly before the end of the year Portugal will be in the same situation," said David Taylor, a market analyst at CMC Markets Ltd. in Sydney. "There is also the possibility of conflict between North Korea and South Korea. There is some nervousness in the market."

South Korean President Lee Myung Bak, pledged to pay Kim Jong Il, the regime of military attacks as China sought talks to ease tensions on the Korean peninsula.

North Korea "will deal a merciless struggle against military attack on any act of provocation by intruding into its territorial waters," a newspaper Rodong comments made yesterday by North Korea's official Korean Central News Agency.

North Korea on November 23 community bombed a South Korean fishing and the military base of highly flammable munitions that killed four people.

Brent crude oil for January settlement rose as much as 0.7 percent, or 62 cents, to $ 86.20 a barrel on London's ICE Futures exchange in Europe. The contract fell 0.6 percent Nov. 26 to end the session at $ 85.58.

Traders are increasing bets that oil will reach $ 100 next year on signs of falling inventories and a reduction in spare production capacity.

The price of the options for future purchase in December 2011 at $ 100 per barrel jumped 14 percent on 24 November, the biggest daily gain in three months. called open interest for the contract has risen 51 percent this year to 45,424 lots, the highest for any choice of crude on the New York Mercantile Exchange.

The increase in options trading of $ 100 oil shows some investors anticipate will increase by at least 19 percent to the levels reached in 2008.