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 morning trading nin 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.
Meanwhile, oil refineries on the East Coast have so far reported no major damage from Hurricane Irene which was blamed for at least 26 deaths, widespread severe flooding and millions of homes and businesses losing power.
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