Crude oil surged to its biggest gain in 16 months on speculation that colder weather and an improving economy will spur U.S. fuel consumption.
The National Weather Service predicted that below-normal temperatures will persist in the eastern U.S. for the next two weeks, and the price of natural gas, the country's most common home-heating fuel, jumped 11 percent. Consumer confidence in the U.S., where 25 percent of the world's oil is consumed, neared a five-year high, a report today showed.
``It's finally gotten cold, which will boost demand for natural gas and heating oil,'' said Bill O'Grady, director of fundamental futures research at A.G. Edwards & Sons in St. Louis. ``There's been a steady stream of good economic news in the U.S. It's gotten to a point where the energy markets can no longer shrug off the economic numbers.''
Crude oil for March delivery rose $2.91, or 5.4 percent, to $56.92 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. A settlement at that price would be the biggest one-day gain since Sept 19, 2005. Futures touched $57.05, the highest since Jan. 8. They are 17 percent lower than a year ago.
Brent crude oil for March settlement increased $2.71 to $56.39 a barrel on the London-based ICE Futures exchange.
The National Weather Service predicted that below-normal temperatures will persist in the eastern U.S. for the next two weeks, and the price of natural gas, the country's most common home-heating fuel, jumped 11 percent. Consumer confidence in the U.S., where 25 percent of the world's oil is consumed, neared a five-year high, a report today showed.
``It's finally gotten cold, which will boost demand for natural gas and heating oil,'' said Bill O'Grady, director of fundamental futures research at A.G. Edwards & Sons in St. Louis. ``There's been a steady stream of good economic news in the U.S. It's gotten to a point where the energy markets can no longer shrug off the economic numbers.''
Crude oil for March delivery rose $2.91, or 5.4 percent, to $56.92 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. A settlement at that price would be the biggest one-day gain since Sept 19, 2005. Futures touched $57.05, the highest since Jan. 8. They are 17 percent lower than a year ago.
Brent crude oil for March settlement increased $2.71 to $56.39 a barrel on the London-based ICE Futures exchange.
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