Oil Surges to Highest Level in 17 Months on U.S. Jobs Report

[Purveyor]

By Margot Habiby

April 5 (Bloomberg) -- Crude oil surged to the highest level in 17 months after reports of growth in U.S. jobs, home sales and non-manufacturing businesses signaled that the economy is recovering from the worst recession since the 1930s.

Oil rose as high as $86.57 a barrel as the economic data spurred optimism that fuel demand will increase as the economy rebounds. The U.S. is the world's largest energy consumer. The Standard & Poor's 500 Index climbed to an 18-month high.

"The market is in full embrace of the recovery thesis and is pricing it in accordingly," said John Kilduff, a partner at Round Earth Capital, a New York-based hedge fund that focuses on food and energy commodities. "It's enthusiasm that we're coming out of this recession."

Crude oil for May delivery increased $1.56, or 1.8 percent, to $86.43 a barrel at 10:42 a.m. on the New York Mercantile Exchange. Earlier, futures rose as much as 2 percent to the highest intraday price since Oct. 9, 2008. Crude has climbed 65 percent in the past year.

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http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/04/04/bloomberg1376-L0ESDI1A1I4H-1.DTL

[IDemo]

1. "It's enthusiasm that we're coming out of this recession."

Cue "Happy Days are Here Again".

[Statistical]

2. If economy recovers substantially oil will be $100+ by end of year.

We will be over $150 oil within a couple years.

The reality of peak oil is not pretty. Countries, entities, individuals that divest from this increasingly expensive commodity will prosper. Those that try to cling to an oil based economy will be on the wrong side of the largest transfer of wealth in the history of mankind.

[Lost4words]

5. no chance of the economy changing any time soon, 1 year, no way.

whats going to drive the change?

[Lost4words]

3. I smell corporate profit opportunity!!

[Ishoutandscream2]

4. Oh, great, there's a job recovery!! Let's raise those oil prices!!!

And go back to square one again!! Screw big oil and the blood sucking speculators.