Crude oil prices jumped three percent Monday, topping $85 per barrel, as France and Germany agreed to put more capital into European banks.
The move by the Euro-zone’s two biggest nations helped ease concerns about the global economy. Economists said they’re more confident that there won’t be another recession, and that means world oil demand should continue to grow.
Benchmark crude rose $2.43, or 3 percent, to end the day at $85.41 per barrel in New York. Brent crude, which is used to price many international kinds of oil, rose $3.07 to finish at $108.95 in London.
“Another day, another bailout and yes, bailouts are bullish! Another plan to save Europe and rising expectations of the US economy has oil back on an upward track,” said Phil Flynn at PFGBest.
While the U.S. may avoid another recession, rising oil prices could keep retail gasoline prices from sinking as low as some thought they might this year. Pump prices have been falling almost every day since the first week of September.
On Monday, the national average price of unleaded gasoline dropped slightly from Sunday’s $3.396 per gallon to $3.395, AAA said.