"Oil Hovers Above $86 After 2-Month, 24 Percent Rally"
"SINGAPORE -- Oil prices hovered near 18-month highs above $86 a barrel Tuesday in Asia as traders mulled whether a recovering U.S. economy warranted further gains.
Benchmark crude for May delivery was down 20 cents to $86.42 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.75 to settle at $86.62 on Monday, the highest since October 2008.
Oil has jumped 24 percent since early February.
Crude had traded between $69 and $84 for about nine months before breaking out last week amid investor optimism an improving U.S. economy will eventually boost crude demand. On Monday, reports showed strong improvements in demand at services businesses and in the housing market."
Alex Kennedy reports for the Associated Press March 6, 2010.
See Also:Source: AP, 04/06/2010