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Oil surged the most in a month after U.S. payrolls climbed more than estimated and service industries expanded at a faster pace, bolstering optimism about economic strength in the world’s biggest crude-consuming country.
Futures rose as much as 5.3 percent as payrolls gained 163,000 last month, Labor Department figures showed today in Washington. The Institute for Supply Management’s non- manufacturing index unexpectedly increased. Tropical Storm Ernesto may grow into a hurricane late this weekend, the U.S. National Hurricane Center said.
Payrolls were projected to increase by 100,000, according to the median estimate of 89 economists. Revisions to prior reports subtracted a total of 6,000 jobs to payrolls in the previous two months. The jobless rate unexpectedly rose to 8.3 percent, a five-month high.
The ISM index rose to 52.6, from 52.1 in June, the Tempe, Arizona-based group said today. The median forecast of 73 economists called for no change from June. A reading above 50 signals expansion.
Crude oil for September delivery rose to $91.74 a barrel on the New York Mercantile Exchange. Futures are headed for the biggest gain since June 29. Prices are up 1.7 percent this week, and have dropped 7.3 percent this year.
Brent oil for September settlement advanced $3.09, or 2.9 percent, to $108.99 a barrel on the London-based ICE Futures Europe exchange.
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