Oil Set for Monthly Rise on US Demand Optimism

29 October 2009 (Last Updated October 29th, 2009 18:30)

Crude oil is poised for its biggest gain in five months after a report showed the US economy grew in the third quarter, spurring optimism that fuel demand will increase. Oil rose 3.1% yesterday, the most in two weeks, after the US Commerce Department said that the world’s largest energ

Crude oil is poised for its biggest gain in five months after a report showed the US economy grew in the third quarter, spurring optimism that fuel demand will increase.

Oil rose 3.1% yesterday, the most in two weeks, after the US Commerce Department said that the world’s largest energy-consuming country expanded at a 3.5% annual pace between July and September, reported Bloomberg.

Crude oil for December delivery traded at $79.52 a barrel, down $0.35 in electronic trading on the New York Mercantile Exchange at 4.22pm Singapore time.

Yesterday, the contract rose $2.41 to $79.87 a barrel. Futures, up 78% so far this year, are set to gain 13% in October, the biggest monthly rise since a 30% rally in May.

Crude oil may fall next week on speculation the dollar will rebound against the euro and equities may pull back, according to a Bloomberg survey.