By Claudia Assis and Virginia Harrison, MarketWatch
SAN FRANCISCO (MarketWatch) — Crude-oil futures rose nearly 2% Monday after data showed Americans earning and spending more and as U.S. equities traded higher, stoking hopes of more demand for oil.
Crude for October delivery CL1V +1.87% added $1.53, or 1.8%, to $88.94 a barrel on the New York Mercantile Exchange after touching a high of $87.62 a barrel.
The rise extends last week’s gains for oil, with crude getting a slight lift after Federal Reserve Chairman Ben Bernanke offered an optimistic assessment of the U.S. economy on Friday. Read more on Bernanke’s speech
The Commerce Department on Monday reported U.S. personal incomes rose 0.3% in July, with spending at an even faster clip.
Spending rose 0.8% as auto purchases surged. Read more on personal income and spending.
Hurricane Irene
Trading volumes were expected to be light with London markets closed and New York-area transportation slowed after Hurricane Irene.
The hurricane battered the U.S. East Coast on the weekend causing heavy flooding and killing at least 22 people, according to media reports.
However, the damage to property was not as bad as some analysts had predicted, and most oil refineries in the region escaped major destruction, the reports said. Read more on Hurricane Irene
ConocoPhillips COP +1.94% said it made a controlled shutdown of its refinery in Linden, N.J., on Sunday, according to reports, while other refineries in the region were operating as normal.
Gasoline for September delivery SI1U -0.18% added 1 cent to $2.95 a gallon.
“Hurricane Irene packed a much smaller punch than feared,” analysts at J.P. Morgan said in a note to clients Monday. September is peak month for hurricane activity, however, they added.
As for Irene, “the first round effect is clearly to lower economic activity in the affected areas, but President Obama has declared a federal state of emergency in several states which means that federal funds will cover much of the cost, and should provide some degree of fiscal stimulus to the East Coast in the coming weeks,” they said.
