Oil jumped nearly 2 percent Monday on optimism about the pace of global economic recovery and as cold weather across the United States increased fuel demand. Light sweet crude oil for November delivery rose $1.50 to $73.27 a barrel on the New York Mercantile Exchange, the highest closing price since August 24. Oil prices were helped by a declining U.S. dollar as investors positioned ahead of U.S. corporate profit reports later this week on expectations of strong results. Traders have been looking for signs of an economic rebound that could support fuel demand, which has been lowered by the recession. Also, the U.S. National Weather Service (NWS) said total U.S. heating demand will be higher than normal this week as the first seasonal wave of cold weather hits the northeastern and central parts of the country.
