Oil heads for third weekly gain on Obama Job Plan

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Oil headed for a third weekly gain as investors bet President Barack Obama’s job-creation plan will support demand for fuel and as producers in the Gulf of Mexico evacuated workers ahead of Tropical Storm Nate.

New York futures climbed as much as 0.5 percent, erasing a drop of 0.8 percent, after Obama asked Congress to pass a proposal that would inject $447 billion into the economy of the world’s biggest crude user.

Oil for October delivery gained as much as 45 cents to $89.50 a barrel in electronic trading on the New York Mercantile Exchange and was at $89.08 at 2 p.m. Singapore time. Prices are 3 percent higher this week and up 20 percent the past year.

On the other hand, gold prices in the international market are expected to fall, after Obama Job Plan. Presently, gold price was seen pegged at $1869 per ounce.