Oil prices rise on signs of growth

Associated Press

NEW YORK

Oil prices jumped more than 4 percent Monday, reaching the highest level in more than two months, on signs of economic growth in the U.S. and Asia.

After bracing for a possible recession in the U.S. and Europe, analysts say investors have changed course. They’re now trading with the expectation that Western economies will keep growing this year — albeit slowly. As the economy strengthens, demand for oil rises to run factories and fill drivers’ gas tanks.

“The market was being held back by fear” of a recession, PFGBest analyst Phil Flynn said. “We haven’t seen stellar economic numbers so far, [but] they haven’t been recessionary.”