NEW YORK (
) -- Crude oil futures rallied alongside stocks Monday on the hefty bailout package created by the EU and the IMF to extinguish European sovereign debt contagion fears.
After tumbling nearly 13% last week, the June crude oil contract finished 2.3% higher, gaining $1.69, to settle at $76.80 a barrel.
Investors in stocks and crude alike applauded the
near $1 trillion aid plan from the European Union and the International Monetary Fund to be used to shore up the struggling eurozone. Last week, markets were dragged down on fears that Europe's sovereign debt crisis would metastasize and spread to other regions of the globe.
While the pickup in crude is a welcome relief for the heavily pressured commodity, Darin Newsom, senior analyst at Telvent DTN, says Monday's uptick may only be a knee-jerk, short-term one.
"I think they're still throwing paper wads at the wall. To me, this is a one-day reaction," Newsom said. "Yes, we're rallying today, but the underlying fundamentals are very bearish. We'll have to see." He added later, "We're up today, but I think we're back under pressure tomorrow."
Stocks soared straight out of the starting gates today and held onto strong gains through the close. The
Dow Jones Industrial Average
finished 405 points higher and other major U.S. indices ended the session more than 4% higher. The
greenback also weakened on news of the plan, with the dollar index losing 0.6% Monday.
Oil-related stocks were also surging along with the rest of the market, as the NYSE Arca Oil index climbed 3.8% and the Philadelphia Oil Service Sector index improving 4.4%. On the Dow, shares of
gained 2.4%, to $65.23, while
shares rose 3.6%, to $79.89.
said in a statement Monday that efforts to contain the burgeoning oil slick in the Gulf of Mexico have cost the firm $350 million thus far. After plans to drop a large containment box over a primary leak were thwarted because of gas hydrate clogs, the
New York Times
reported over the weekend, BP said it was readying a similar, but smaller containment device that would funnel escaping oil to ships. American depositary shares for BP lost 31 cents, or 0.6% on the session to close at $48.75.
Elsewhere in the energy space,
posted a first-quarter profit following a year-ago loss and trimmed its loss forecast, while coal producer
pared down its bid for Australia-based
. Shares added 13.5% and 9%, respectively.
On the Nymex, the June natural gas contract advanced by 16 cents, or 3.9%, to settle at $4.17 per million British thermal units. June heating oil gained 4 cents, or 2%, to settle at $2.12 a gallon, while June gasoline picked up 5 cents, or 2.2%, to settle at $2.17 a gallon.
--Written by Sung Moss and Melinda Peer in New York