Oil Climbs More


Oil jumped nearly $3 a barrel on Monday, lifted by a rally in gas oil and as optimism that banks will manage to shore up the financial system helped to fuel buying across commodities and equities.

A rally in gas oil, the benchmark for heating oil and diesel in Europe, on concern of tight supply boosted U.S. heating oil and pushed crude higher, analysts said. Gas oil hit a record high of $1,005 a tonne.

U.S. crude rose $2.75 to $108.98 a barrel by 1427 GMT after leaping $2.40 a barrel on Friday. London Brent crude added $2.31 to $107.21.

Oil prices, which reached an all-time high of $111.80 on March 17, have come under some pressure from expectations a slowdown in the United States, the world's biggest energy consumer, could erode demand.

But speculation the Group of Seven rich nations meeting in Washington this weekend would help to alleviate credit-related problems helped to overcome fears of U.S.-led economic weakness and encouraged buying across a range of assets.

World stocks hit a fresh one-month high as U.S stocks rose at the market open on Monday, led by financial shares while London's FTSE 100 index rose nearly one percent.


TradingEconomics.com, Reuters
4/7/2008 8:11:37 AM