Spain unveiled a budget for 2013 that had measures to curb spending and reduce its debt burden, instilling hopes that Europe was serious about getting its debt crisis under control.
Oil prices soared on renewed optimism about an economic revival while news also trickled in from China that the world's second largest economy would be announcing a fresh stimulus to boost growth. China’s is the world’s biggest energy consumer and a robust growth in the country is essential to propel global demand for energy products.
New York's main contract, light sweet crude for November, rose $US1.87 from Wednesday to close at $US91.85 a barrel
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The benchmark New York futures contract had shed $US1.39 Wednesday, closing below $90 for the first time since August 2 on escalating concerns about the Eurozone public debt crisis.
In London, Brent North Sea crude for delivery in November jumped $1.97 to settle at $112.01 a barrel.
Analysts said that people were encouraged that the European Union was taking comprehensive steps to get the debt crisis under control.
Tensions in the Middle East led to concerns of supply disruption that also contributed to the rise in oil prices.
Oil prices have risen after three days of decline. Employment data from the United States, that were lower than expected had depressed sentiments leading to fears that demand for oil would remain muted.
Heating oil rose 5 cents to $3.15 per gallon. Wholesale gasoline gained 4 cents to $2.92 per gallon, while natural gas added 8 cents to $3.29 per 1,000 cubic feet.
United States Oil Fund LP (ETF)(NYSEARCA:USO) added 2.46% to $34.16, while United States Natural Gas Fund, LP(NYSEARCA:UNG) rose 3% to $21.10.
Braskem SA (ADR)(NYSE:BAK)) fell 2.50% after downgraded to Neutral at Credit Suisse, which says the market may look at BAK differently because of a setback in basic petrochemicals, which make up ~25% of sales.
Rex Energy Corporation(NASDAQ:REXX) added over 4% after announcing initial production results from its first Ohio Utica Shale well. The Brace #1H well averaged a five-day sales rate, assuming full ethane recovery, of 1,008 boe/day.
Valero Energy Corporation(NYSE:VLO) climbed 1.75% as the company is selling its retail business, which operates gas stations and convenience stores, through an auction that could fetch more than $3.5B and has lured the interest of private equity firms and convenience store operators, Reuters reports. VLO reportedly is being advised by Credit Suisse and expects to receive initial offers in October.
Pacific Drilling SA(NYSE:PACD) surged 3% as is initiated with a Buy rating and $12.50 target price at Dahlman Rose, which says PACD is a pure-play ultra-deepwater driller with one of the world's youngest and most capable fleets.
BP plc (ADR)(NYSE:BP) may get less than half the $2.85B it planned for selling its Texas City refinery, Bloomberg calculates, as values for U.S. plants haven’t kept pace with rising profits. The average price of U.S.