Crude Oil and Natural Gas Surge on Signs Demand May Rebound

Oct. 25 (Bloomberg) — Crude oil jumped the most in a month and natural gas ended at a record on signs that U.S. fuel consumption will increase with the end of the Atlantic hurricane season and the beginning of winter.

Some analysts said they aren’t convinced by several weeks of Energy Department data showing a drop in U.S. fuel demand. Total petroleum supplied, the department’s measure of consumption, includes inventory and import figures reported by companies and estimates of exports. The department’s next report will be released tomorrow.
“We want to get a better idea of what’s going on with demand,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “There are figures every week but they are hard to read. Nobody wants to bet that there has been demand destruction until the numbers are no longer affected by the hurricanes.”

Crude oil for December delivery rose $2.12, or 3.5 percent, to close at $62.44 a barrel on the New York Mercantile Exchange, the biggest increase since Sept. 19. Oil closed yesterday at $60.32, the lowest since July 28.

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