Oil posts biggest gain in 2 months, tops $91

Associated Press Modified: October 4, 2012 at 4:31 pm •  Published: October 4, 2012
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As a result, Californians should expect dramatic increases in gas prices through Columbus Day, said Tom Kloza, chief oil analyst at Oil Price Information Service

Phil Flynn, a senior market analyst for Price Futures Group, said there are also lingering problems from Hurricane Isaac in late August. When Isaac forced refinery shutdowns on the Gulf Coast, some wholesale gasoline buyers put off buying because they assumed refiners would come back strong.

"Every time you think things are going to be easy, something bad happens the next day," he said.

Kloza said average pump prices in the U.S. should move "a bit higher" after the jump in gasoline futures, but he adds that "the larger trend should be toward more temperate prices."

Oil had its biggest jump since early August. In addition to the Turkey-Syria tensions, oil got a boost from a falling dollar, which tends to influence investors to buy commodities like oil and gold.

The problems with refineries and the risk of war in the Middle East "all seem to underscore the concern that supplies are pretty thin at this point," said Stephen Schork, an analyst and trader in Villanova, Pa.

Brent crude, which is used to price international varieties of oil, rose $4.41, or 4.1 percent, to $112.58.

Other energy futures traded in New York jumped as well:

— Natural gas rose a penny to $3.406 per 1,000 cubic feet.

— Heating oil advanced 12.2 cents, or 4 percent, to $3.1884 per gallon.

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AP Business Writer Sandy Shore contributed to this report.