Oil Surges Along With Stocks

Updated from 9:01 a.m. EDT

Crude oil markets received a powerful boost Friday even as the U.S. stock market roared in an all-day rally on news that the U.S. Treasury Department is formulating a solution to the credit crisis.

West Texas crude for October delivery surged $6.67 to settle at $104.55 a barrel on the Nymex. Nymex data for Brent was unavailable for most of the day, but The Wall Street Journal showed Brent crude futures edged roughly $2 higher to $99.80.

Reformulated gasoline gained 12 cents to $2.60 a gallon, heating oil also climbed 12 cents to $2.90 a gallon, and natural gas slid 5 cents to $7.53 per million British thermal units.

The Nymex energy pits were mainly focused in Friday's session on developments arising in the U.S. economy and its mega-banks. However, miscellaneous oil-related headlines trickled in from various international locales throughout the day that will likely impact crude prices in the intermediate to long term.

First, a recent escalation in the number and ferocity of anti-government rebel attacks in Nigeria forced Royal Dutch Shell (RDS.A Quote) to issue a warning early Friday that it may not reach its next quarterly earnings target. The British company said that it is facing unforeseen expenses from increased equipment downtime, growing repair costs and impaired cash flows. Royal Dutch Shell rose 6% to $62.43.

Additionally, Sinopec (SNP Quote), China's second largest oil company by market cap and its largest refiner by product throughput, announced early Friday that it plans to cut crude imports for the remainder of 2008 by 8%, saying that it has enough petroleum in storage to reach its product production targets. Sinopec nevertheless rose 10.8% to $90.66.