NEW YORK – Oil is climbing on a rebound in U.S. consumer spending.
Benchmark West Texas Intermediate crude on Monday rose $2.10, or 2.5 percent, to $87.49 per barrel in New York. Brent crude rose 75 cents to $112.11 in London.
Prices jumped after the government said consumer spending in July rose by the most in five months, easing fears that another recession may be coming. Consumers drive the U.S. economy, and traders see the report as a sign that energy demand for oil and gasoline will rebound.
At the pump, gasoline was unchanged at a national average of $3.61 per gallon.