Dallas: Crude oil surged to the highest level in 17 months as US employers created more jobs in March than at any time in the past three years, an indication that the economy is recovering from the worst recession since the 1930s.
Oil rose as high as $85.97 a barrel after the Labor Department reported that payrolls rose by 162,000 last month, spurring optimism that fuel demand will increase as the economy rebounds. The jobs report came out on 2 April, when US financial markets were closed for the Good Friday holiday.
“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 84 cents, or 1%, to $85.71 a barrel at 9:28am on the New York Mercantile Exchange. Earlier, futures rose 1.3% to the highest intraday price since 9 October 2008. Crude has increased 63% in the past year.
Ayesha Daya in Dubai and Timothy R. Homan in Washington contributed to this story.