Price of oil closes at 16-month high


This month has seen its share of good news for the U.S. economy, which has translated into a boon for operators of oil and gas wells.

This month has seen its share of good news for the U.S. economy, which has translated into a boon for operators of oil and gas wells. The employment report released by the Bureau of Labor Statistics at the beginning of the month showed improvement in the job market and recent industrial data also points to ongoing growth.

On Thursday, the Federal Reserve Bank of Philadelphia reported that manufacturing activity in the mid-Atlantic region is growing faster than at any time in the last two years. The bank's manufacturing index rose from 12.5 to 19.8, widely beating the expectations of a group of economists polled by MarketWatch. The New York Fed also noted improvement in the sector, although the increase was more modest.

Following the release of the positive economic data on Thursday, oil prices surged. Benchmark crude for August delivery rose to $108.04 per barrel on the New York Mercantile Exchange, hitting a price point not seen at the close of trading in 16 months.

The rise in oil prices may also have been prompted, at least in part, by Federal Reserve Chairman Ben Bernanke's assurances that the central bank will not end its stimulus programs until economic growth appears to be on a sustainable trajectory. Testifying before lawmakers on Wednesday and Thursday, Bernanke said the Fed would continue to hold down interest rates and purchase bonds to support financial markets.

Implementing jet pumps is one of the most effective options available to oil producers looking to capitalize on the high price of crude. This powerful solution allows well operators to maximize recovery rates while limiting the demand on power sources.