Oil Heads for Biggest Weekly Gain Since 2009 on Libya, Economy

Oil headed for its biggest weekly gain in two years on concern the turmoil which has cut Libya’s output may spread to other parts of the Middle East and speculation the U.S. economic recovery will boost fuel demand.

Futures rose as much as 1.7 percent before U.S. data today that may show economic growth quickened and consumer confidence improved. Crude surged to a 29-month high yesterday amid estimates that Libya’s output was cut by as much as two-thirds. It fluctuated after the U.S., Saudi Arabia and the International Energy Agency made assurances they can compensate for any disruption of Libyan supplies.