Oil prices jumped by more than 4% this evening as economic data sparked fresh optimism that the recession may be bottoming out. The number of US workers staying on jobless benefits fell to the lowest in three months last week, government data showed.
Support also came from data showing that euro zone economic sentiment increased in July to its highest level in eight months.
US crude gained $2.73 to $66.08 a barrel after dropping sharply on Wednesday following the release of US data showing a steep rise in crude inventories. London Brent was up $2.97 at $69.50 a barrel.
Expectations that a rebound in the global economy could bolster slumping fuel demand have helped push crude up from below $33 a barrel in December, with many investors looking to stock markets for early signs of a turnaround.
The recession has battered global fuel consumption and sent crude tumbling from record highs near $150 a barrel struck in July 2008, prompting the Organisation of Petroleum Exporting Countries to agree a series of output cuts aimed at lifting prices.
