Crude oil surged and gasoline rose to a 17-month high after U.S. employment declined less than forecast in February, bolstering optimism that fuel demand will climb in the world’s biggest energy consuming country.
Oil rose as much as 2.3 percent after the Labor Department reported that payrolls dropped 36,000 last month. The total was forecast to fall by 68,000, according to economists surveyed by Bloomberg News. U.S. fuel use, averaged over the past four weeks, was 19.3 million barrels, up 3 percent from a year earlier, an Energy Department report on March 3 showed.
“The employment numbers were quite good relative to expectations, so I’m surprised the market isn’t responding more,” said Michael Fitzpatrick, vice president of energy at MF Global in New York.
Crude oil for April delivery rose $1.26, or 1.6 percent, to $81.47 a barrel at 12:09 p.m. on the New York Mercantile Exchange. Futures reached $82.07, the highest level since Jan. 12. The contract is up 2.3 percent this week.
Gasoline for April delivery increased 3.13 cents, or 1.4 percent, to $2.265 a gallon in New York. The fuel touched $2.2831, the highest price since Oct. 3, 2008.
The Standard & Poor’s 500 Index gained 10.83, or 1 percent, to 1,133.80. The Dow Jones Industrial Average rose 81.25 points to 10,525.39.
“We had a nice spike up on the jobless report,” said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. “Whenever we get above $80 the bids seem to dry up. I will have to see us close above $80 for a few more days before I’m convinced we’re going to test $84.96.”
The April oil contract surged to $84.96 a barrel on Jan. 11, the highest level since October 2008.....Read the entire article.
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