Oil prices extended a three-day rally to their highest levels in almost eight months this evening on rising hopes that the global economic recession had bottomed out, spelling a recovery in energy demand.
The International Energy Agency said it had revised its outlook for global oil demand higher for the first time since August, two days after the US government's energy forecaster did the same.
'These revisions do not necessarily imply the beginnings of a global economic recovery, and may only signal the bottoming out of the recession,' the Paris-based adviser to 28 industrialised nations said. Meanwhile, US data showing an increase in retail sales in May and a slowdown in weekly jobless claims reinforced perceptions that the deterioration of the world's top economy was easing.
US crude rose $1.90 to $73.23 a barrel, the highest price since October 21. London Brent crude gained $1.42 to $72.22.
Adding support was data from China, the second-largest oil consumer, showing oil imports in May rose 5.5% from a year ago, the second-highest volume on record. Oil prices have jumped nearly 7% in three days on expectations that a revival of the economy and continued OPEC production curbs would tighten up consumer stockpiles.
