14 Feb 2009

US oil jumps 10%

10:02 am on 14 February 2009

US oil has risen in price by nearly 10% on hopes a stimulus package could help pull the US economy out of a 14-month recession.

Members of the US House of Representatives earlier voted 246-183 to pass the $US787 billion package.

By 2.22pm EST (1922 GMT) on Friday, US crude for March delivery had risen $US3.30 to $US37.28 per barrel. London Brent crude for April traded down $US1.47 to $US44.56 per barrel.

Oil prices are well below a record of $US147.27 per barrel reached on 11 July last year, as the economic downturn cuts energy consumption.

Members of OPEC have cut production by 4.2 million barrels per day since September.

However, the cartel expects further falls in consumption. Members are next scheduled to meet in March.