Oct. 29 (Bloomberg) -- Crude oil climbed more than $5 a barrel, the biggest gain in a month, amid signs that central bank interest-rate cuts may help revive fuel demand.

Oil advanced as much as 9.9 percent on forecasts that the U.S. Federal Reserve will cut rates today to help spur a recovery in the world's biggest fuel-consuming country.

China lowered rates today and the European Central Bank may reduce them next week. Prices also rose because the dollar fell the most against the currencies of six major U.S. trading partners since 1998.

``The primary movers of energy markets are the credit crisis and the financial meltdown,'' said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut. `

`The next signpost will be the Fed's statement today. We've priced in a 0.5 percent cut, but if there's a bigger interest rate cut, oil prices could head for the $69-to-$70 level.''

Crude oil for December delivery rose $5.31, or 8.5 percent, to $68.04 a barrel at 12:23 p.m. on the New York Mercantile Exchange. Futures are heading for the biggest gain since Sept. 22. Prices, which have tumbled 54 percent since reaching a record $147.27 on July 11, are down 27 percent from a year ago.

``The market is up on anticipation that there will be coordinating interest-rate cuts,'' said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York.

Read the full article at Bloomberg:

- This primary a repeat of my previous post that mentioned briefly on the rise of oil prices by $5 within a single day with addition of the possibility of interest rate cut by the feds to boost liquidity of the market.

This obviously is another nice juicy news that supports a strong return of the oil spikes or it may remain low...depending on how much the feds cut the interest rates.

Let's monitor today's news on fed interest rate cuts!

Latest news is Fed had concluded the 2 day meeting and decided on a 1/2 percent cut!! This may means less money to boost the oil prices but what will happen next?