Oil prices rose more than 2 percent on Monday to their highest since October 2008, after data showed U.S. payrolls surged in March, the service sector expanded and pending home sales grew, as the world’s top energy consumer emerges from an economic downturn.
U.S. payrolls rose by 162,000 last month, the fastest rate in three years, Labor Department data showed on Friday.
The U.S. service sector grew in March at its fastest pace in nearly four years while pending home sales also rose, according to the ISM industry survey and a National Association of Realtors report on Monday.
Economic optimists have taken control of the market after jobs data, manufacturing and pending home sales data all came in better than expected.
U.S. crude oil for May delivery rose $1.77 to $86.64 a barrel by 11:58 a.m. EDT.
U.S. markets reopened after a three-day weekend including the Good Friday holiday. London markets were closed on Monday for Easter.
Brent crude rose $1.69 to $85.70 per barrel.
U.S. equities rose while the dollar weakened against a basket of foreign currencies and commodities gained broadly.
OPEC members, including the world’s largest crude exporter Saudi Arabia, said last week at the International Energy Forum in Cancun, Mexico, that they favored an oil price in the $70 to $80 a barrel range. But OPEC, which pumps about a third of the world’s oil, has no immediate plans to revise output targets and produce more crude even with oil near $85, a person familiar with Saudi oil policy told Reuters last week.
Technical analysts, who follow the movement of prices on historical charts, have become more bullish and suggest the oil market could move higher in the next few weeks. Technically, there is very little resistance showing on the charts given the upside breakout evident.

