Oil jumps on recovery hopes
Crude briefly hits $85, a 17-month high, as traders see more evidence that the U.S. and global economies are improving.
Updated: 6:40 p.m. ET.
There's a downside to an economic recovery. It may well mean higher oil and gasoline prices.
In fact, crude oil briefly hit $85.22 a barrel today before drifting back to $84.87 a barrel. The close was the highest since Oct. 9, 2008.
Crude is up 6% this week alone -- and 7% this year -- after jumping 78% in 2009. Gasoline, if you use data from AAA's Daily Fuel Gauge Report, is up about 6% on top of a 63% gain in 2009.
"The economic news recently has generally been good, which has changed the perception of the oil market," Sarah Emerson, managing director of Energy Security Analysis in Wakefield, Mass., told Bloomberg News. "An economic recovery is always good for demand."
The latest evidence of recovery:
The Institute for Supply Management’s index of manufacturing in the U.S. rose to 59.6 in March from 56.5 a month earlier, the fastest pace since July 2004.
A reading above 50 indicates expansion. Economists forecast a gain to 57, Bloomberg said.
The Purchasing Managers’ Index for China rose to a seasonally adjusted 55.1 in March from 52 the previous month, Hong Kong-based Li & Fung Group said today. In Japan, the Tankan index of sentiment jumped to minus-14 in March from minus-25 in December. The U.S., China and Japan are the three biggest oil- consuming countries.
But while the recovery news is improving, the jobs picture remains weak both in the United States and Europe.
The reports helped push natural-gas futures up 6.6% to $4.125 per million British thermal units.
Energy stocks were higher. Exxon Mobil (XOM) was up 0.9% to $67.61. Chevron (CVX) added 1.1% to $76.69. Transocean (RIG) jumped 2.8% to $88.77, and Apache (APA) rose 2.3% to $103.87.
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] A solid November employment report translated into a solid day of gains for the major averages. While there was some talk that the encouraging job growth raised the odds of the Fed announcing a tapering at its December meeting, the message of the markets today was either that it didn't believe there would be a tapering this month or that it doesn't fear a tapering this month.
It was just one day, yet there was ample meaning wrapped up in the connection that the 10-yr ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.