Reply #3: Oil jumps above $63 on higher Asian stocks [View All]

[ozymandius]

SINGAPORE – Oil prices jumped above $63 a barrel Monday in Asia as regional stock markets rallied on a massive Chinese economic stimulus plan, which could underpin demand for crude.

Light, sweet crude for December delivery was up $2.42 to $63.46 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract Friday rose 27 cents to settle at $61.04.

China's $586 billion stimulus package announced Sunday helped lift Asian stock markets Monday. The Shanghai Composite Index surged 7.3 percent, Japan's benchmark Nikkei 225 index rose 5.8 percent and Hong Kong's Hang Seng index gained 4.8 percent.

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According to a summary of the agency's World Energy Outlook report due to be published in full this week, the IEA has hiked its forecast for the price of a barrel of oil in 2030 to just over $200 in nominal terms, compared to last year's estimate of $108 a barrel.

In other Nymex trading, heating oil futures rose 5.66 cents to $2.04 a gallon, while gasoline prices gained 5.10 cents to $1.40 a gallon. Natural gas for December delivery rose 27.6 cents to $7.03 per 1,000 cubic feet.

http://news.yahoo.com/s/ap/oil_prices