Gains in equities markets push oil prices higher

Crude oil prices gained Monday after last week’s declines after officials in the US and Europe announced more details about plans to help banks in hopes of easing the credit crisis.

The gains came even though Goldman Sachs (NYSE: GS) cut its projection for the price of West Texas Intermediate crude from $110 per barrel to $75 per barrel in the fourth quarter, while other analysts also cut price predictions for the fourth quarter and for next year.

November contracts for West Texas Intermediate crude added $3.46 to $81.16 per barrel on the New York Mercantile Exchange while Brent crude for November delivery gained $2.97 to $77.06 per barrel.

Nymex November gasoline futures were up 7 cents to $1.88 per gallon while November heating oil added 10 cents to $2.31 per gallon and November natural gas gained 15 cents to $7.34 per million British thermal units.

Falling demand and the process of getting Gulf Coast refineries back online after Hurricanes Gustav and Ike sent at the pump prices for regular unleaded gasoline down 4.1 percent overnight to $3.206 per gallon on average nationally, while seven states now have average prices below $3 per gallon.