Oil prices jumped close to $106 a barrel this evening, driven by the weak US dollar, tight energy supplies and more bad news on the US economy.
US crude jumped $1.92 to $105.75, after earlier touching $105.97. London's Brent North Sea crude for May rallied $1.78 to $104.30.
The US dollar sank against the euro after news that US employers cut a surprisingly large 80,000 jobs in March, the biggest decline in employment in five years.
Many traders are concerned that slowing US growth could prompt a slowdown in demand because the US is the world's biggest consumer of energy.
On Wednesday, however, prices soared after news that US petrol reserves tumbled 4.5 million barrels, compared with forecasts for a smaller drop of 2.5 million barrels.
The market is beginning to closely watch petrol inventories ahead of the US peak demand season for motor fuel, which begins in May when Americans begin their summer holidays.
