Commodity Corner: Crude Rallies More Than 5%
Powered on reports that European officials are planning to boost the region's bailout fund, crude futures surged 5.3 percent Tuesday. Crude has been recently trading lower on an impending liquidity crunch caused by the euro debt crisis.
November crude gained $4.21 Tuesday marking the biggest single-day gain in more than four months. Having traded as high as $84.77 and as low as $80.92, crude settled at $84.45 a barrel on the New York Mercantile Exchange.
Oil also took its cues from a slight improvement in U.S. consumer confidence. According to the Conference Board, September's consumer confidence rose to 45.4 from August's 45.2.
Brent crude also settled up at $107.14 a barrel on the ICE Futures Europe exchange, adding $3.20 from the previous session. Brent hit an intraday high of $107.42 a barrel.
Up for a second consecutive session, natural gas futures climbed 4.5 cents, or 1.2 percent, to settle at $3.83 per thousand cubic feet.
Forecasts for cooler weather in the Midwest and Eastern states should boost heating demand through the first week of October. Meanwhile, above-average temperatures in Texas and the Southwest are expected to increase late-season cooling demands. The intraday range for natural gas was $3.77 to $3.85 Tuesday.
RBOB gasoline for October delivery jumped 12.61 cents to $2.6955 a gallon. It was the biggest one-day gain since May 9. Gasoline prices fluctuated between $2.59 and $2.7055 a gallon.