Crude Oil Up $6 a Barrel

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Crude oil rose more than $6 a barrel, as investors hope government measures to solve the banking crisis will bolster demand for petroleum, according to Bloomberg.
Prices rose 7.5 percent and stock markets surged, as U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke announced plans to halt the credit-market seizure. Output disruptions from hurricanes in the U.S. and attacks in Nigeria have constrained supplies of crude oil.
Crude for October delivery increased $6.45, or 6.6 percent, to $104.33 a barrel.
Oil may rise next week amid low U.S. inventories in the wake of hurricanes Ike and Gustav, and prices are expected to continue to climb.
U.S. energy companies resumed about 11 percent of oil production and a quarter of natural-gas output in the Gulf of Mexico, after shutting almost all facilities before hurricanes Ike and Gustav. The Gulf accounts for about 26 percent of U.S. oil production and 14 percent of natural gas.
In Nigeria, Royal Dutch Shell plc warned that this week's escalation in militant attacks would hurt earnings. The country has lost about 280,000 barrels a day from the violence.
Regular gasoline, averaged nationwide, rose 2.8 cents to $3.807 a gallon, according to the Auto Club.

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