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Biggest 1-Day Gain in Oil

Biggest 1-Day Gain in OilBiggest 1-Day Gain in Oil

Oil soared more than 10 percent on Thursday, its biggest one-day gain since March 2009, lifted by resurgent global stock markets and a report showing the US economy grew faster than previously reported in the second quarter.

US oil rose $3.96, or 10.3%, to $42.56 in New York. That is the biggest gain since March 12, 2009, when oil gained 11%. Brent crude rose 10.3% to $47.56 a barrel in London, AP reported.

Oil had fallen to a six-and-a-half-year low because of a global supply glut and worries about the health of China's economy. Analysts viewed Thursday's gain as a reaction to the rebound in China's main stock index, which rose the most in eight weeks, but do not expect a long-term rally in oil prices.

"One up day in a sea of consistent summer selling does not make for an imminent recovery in crude oil, or in gasoline," said Tom Kloza, global head of energy analysis at Oil Price Information Service.

US consumers can still expect to see sharply lower gasoline prices in the fall.

Kloza said OPIS sees pump prices falling 12 cents to 17 cents a month from September through December. The average price for a gallon of regular gasoline Thursday was $2.53, down 90 cents from a year ago, according to OPIS and AAA.

 

Financialtribune.com