NEW YORK (AP) — Oil soared 17.7 percent in October on the expectation that the world’s thirst for petroleum would keep growing despite economic struggles in the West.
West Texas Intermediate, the benchmark oil in the U.S., jumped from about $79 to $93 per barrel during the month as fears of another U.S. recession subsided while Europe struck a landmark deal to reduce Greece’s debt. Demand from emerging markets remains strong. And a strategy calling for traders to buy WTI futures contracts while selling another variety, Brent crude, also boosted the price of WTI.
The conditions that fostered the increase remain in place.
“Oil demand is higher worldwide,” said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service. “Other parts of the world, most notably South America, are consuming a lot of our (petroleum) products.”
Independent oil analyst Andrew Lipow expects benchmark oil to hit $100 per barrel by the end
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