Natural gas surges nearly 20% in week; other energy commodities also rise Crude-oil futures rose Friday for a third session, extending their weekly gain to more than 9% as a better-than-expected U.S. jobs report cemented recent optimism about an economic recovery and rising prospects for oil demand. U.S. nonform payrolls fell by 539,000 last month, the Labor Department reported. Analysts on average had expected a decline of about 600,000. The unemployment rate rose to a 26-year high of 8.9%, in line with expectation. Crude for June delivery rose $1.56, or 2.8%, to $58.72 a barrel on the New York Mercantile Exchange. It's set to end the week up about 9.5%. Meanwhile, natural gas for June delivery rose 14.9 cents, or 3.7%, to $4.23 per million British thermal units. Natural gas is set to end the week up nearly 20%. "It looks like the market is hoping the worst is behind us in this recession," said Tariq Zahir, managing member at futures trading firm Tyche Capital Advisors. However "while crude has seen some buying lately, the fundamentals are definitely bearish." While the economy showed signs of recovery, crude demand still remained weak and inventories stood high. Crude inventories in the U.S., the biggest oil consumer, stood at the highest level in nearly 19 years, according to Wednesday's data released by the Energy Information Administration. Meanwhile, total petroleum demand over the past four weeks was 7.9% lower than levels a year ago, the EIA report showed. Jobs data lift sentiment This week's trading showed investors were willing to put aside the high inventories level and chase signs of economic recovery. The April jobs report reflected an easing in the pace of massive job destruction from the previous five months. Since the recession began in December 2007, payrolls have fallen by 5.7 million, or 4.1% of payrolls, the largest percentage decline since the 1958 recession. April's loss of 539,000 jobs was the smallest decline since October's 380,000. See full story. Meanwhile, worries about inflation and a weaker dollar also pushed up crude prices. The European Central Bank on Thursday cut its benchmark interest rate to a record low of 1%. Having cut their key rates to close to zero, the Bank of England, U.S. Federal Reserve and Bank of Japan are now buying bonds, essentially printing money to reflate their economies in a policy known as quantitative easing. "Some money is being put to work for the reflation trade," said Zahir. "With bond yields going higher money is also being shifted into crude and gold." The dollar fell against most of its major rivals Friday. Meanwhile, gold futures fell Friday but is set to end the wee up more than 2%. Also in energy trading, June reformulated gasoline rose 1.95 cents, or 1.2%, to $1.685 a gallon and June heating oil added 2.03 cents, or 1.4%, to $1.5055 a gallon.

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