Oil Prices Rebound

Crude oil futures jumped $2.61 per barrel to close at a four-week high of $89.28 yesterday on the New York Mercantile Exchange.

Analysts say investors bid up crude futures on worries that rising Israeli-Palestinian hostilities will lead to disruptions of petroleum shipments. Economists also cite growing optimism that Congress and the White House will resolve the U.S. budget crisis. An agreement would bolster the American economy, which could result in greater energy demand.

Gasoline prices across the U.S. have dropped 28 cents in the past month to $3.42 per gallon, according to the AAA Daily Fuel Gauge Report.

Pump prices neared $3.90 in mid-September when oil futures reached $99 per barrel and then eased as crude slipped below $84 earlier this month.