Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Oil above $108 breaks 30-month high

Oil pricesClick chart for oil and other commodity prices. By Annalyn Censky, staff reporter


NEW YORK (CNNMoney) -- Oil prices breached a 30-month high Monday, as investors continued to cheer a better-than-expected report on the U.S. job market.

Investors welcomed Friday's jobs report as a positive sign that demand for fuel could pick up, as the economic recovery pushes forward.

Crude oil for May delivery fell 53 cents, or 0.5%, to settle at $108.47 a barrel Monday -- its highest close since September 2008. The contract traded as high as $108.78 earlier in the session.

Brent crude, Europe's benchmark, rose $2.30, or 1.9%, to $121 a barrel.

Oil has been on a rally since mid-February, when protests broke out in Libya -- Africa's third-largest oil producer. Investors have been concerned that uprisings in the Middle East could spread to even larger oil producers, like Saudi Arabia, and limit supply coming from the region.

Over the weekend, Nigerian officials announced they will push parliamentary elections back a week, following violent uprisings in the country. Nigeria is Africa's largest oil producer.

Analysts estimate turmoil in North Africa and the Middle East is adding a $15 to $20 risk premium to oil prices.

"The real price of oil is probably somewhere around $90," said John Canally, investment strategist at LPL Financial. "But with Libya, now Nigeria, and just general unrest, traders are nervous about supply disruptions -- so oil stays high."

Meanwhile, the earthquake and tsunami in Japan have since kept on investors even more on edge.

As the world's third-largest economy recovers from the disaster and subsequent nuclear crisis, some analysts predict Japan will increase its demand for oil, sending crude prices even higher.

Despite all the turmoil, money managers surveyed by CNNMoney expect oil prices to ease from their recent highs, and average out to $97 a barrel by year's end.

Meanwhile, the national average price for a gallon of regular gas rose to $3.662 Monday, up 1.7 cents from the day before, according to a daily survey from motorist group AAA. Gas prices have risen for 13 days in a row and are now about 45 cents shy of the record $4.114 reached in July 2008. To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.83%3.88%
15 yr fixed3.15%3.20%
5/1 ARM3.54%3.55%
30 yr refi3.89%3.89%
15 yr refi3.13%3.18%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 24,482.08 96.05 0.39%
Nasdaq 6,880.16 5.08 0.07%
S&P 500 2,665.05 5.06 0.19%
Treasuries 2.41 0.02 1.05%
Data as of 11:15am ET
Company Price Change % Change
General Electric Co 17.93 0.28 1.59%
Bank of America Corp... 29.11 0.17 0.59%
Advanced Micro Devic... 9.96 -0.20 -1.97%
Micron Technology In... 42.32 -0.69 -1.61%
Comcast Corp 39.54 1.09 2.85%
Data as of 11:00am ET

Sections

More than 5% of DACA recipients have started their own businesses since enrolling the program, according to a recent survey. More

An investment advisory group and policy experts say meat taxes are just a matter of time as governments try to reduce greenhouse gas emissions from livestock. More

The company said on Tuesday its hybrid gaming system -- one part mobile, one part home console -- sold 10 million units since its March 2017 launch. More