Reply #2: Oil hovers above $86 after 2-month, 24 pct rally

[ozymandius]

SINGAPORE – Oil prices hovered near 18-month highs above $86 a barrel Tuesday in Asia as traders mulled whether a recovering U.S. economy warranted further gains. ....

Oil has jumped 24 percent since early February.

Crude had traded between $69 and $84 for about nine months before breaking out last week amid investor optimism an improving U.S. economy will eventually boost crude demand. On Monday, reports showed strong improvements in demand at services businesses and in the housing market. ....

In other Nymex trading in May contracts, heating oil fell 0.61 cent to $2.2614 a gallon, and gasoline dropped 0.80 cent to $2.3422 a gallon. Natural gas jumped 2.5 cents to $4.302 per 1,000 cubic feet.

http://news.yahoo.com/s/ap/oil_prices