Oil prices jump on Spain budget, Mideast tensions

Oil prices surged higher Thursday, boosted by renewed optimism for the embattled eurozone after Spain unveiled a 2013 austerity budget and rising tensions in the Middle East.Market sentiment also gained a lift from speculation that Chinas government would soon announce fresh stimulus to boost growth in the slowing economy, the worlds biggest energy consumer.New Yorks main contract, light sweet crude for November, rose $1.87 from Wednesday to close at $91.85 a barrelThe benchmark New York futures contract had shed $1.39 Wednesday, closing below $90 for the first time since August 2 on escalating concerns about the eurozone public debt crisis.In London, Brent North Sea crude for delivery in November jumped $1.97 to settle at $112.01 a barrel.Oil prices rebounded earlier in the day following growing discussions of a further stimulus package from China that improved market sentiment and increased risk appetite, said analyst Myrto Sokou at the Sucden brokerage.The oil market shot higher after Spains 2013 budget announcement, said Andy Lipow at Lipow Oil Associates.The budget has spending cuts and austerity measures perhaps greater than the market expected, Lipow said.People are encouraged that the EU is taking steps to get the debt crisis under control, he added.Meanwhile, prices were supported by geopolitical concerns about the oil-rich Middle East amid speeches at the UN General Assembly about Irans suspected nuclear weapons program, Lipow said.Israeli Prime Minister Benjamin Netanyahu demanded Thursday that the international community impose a red line on Iran to prevent it from enriching enough uranium for a nuclear bomb.