Oil surged over 4% toward $70 a barrel today, buoyed by a drop in US petrol inventories and a weak dollar.
US government weekly oil data showed petrol inventories dropped 1.6 million barrels, in line with separate figures from industry group American Petroleum Institute but contrary to forecasts by analysts who had expected an increase.
Petrol demand over the past four weeks was up by more than 5%.
US crude futures were up $2.87 to $69.58 a barrel by 6.08pm. London Brent crude gained $2.62 to $68.11 a barrel.
Crude oil inventories increased by 2.8 million barrels last week, surpassing analysts' forecast for a 600,000 barrel rise. The increase in middle distillate inventories was smaller than expected, but demand over past four weeks was more than 9% lower than a year earlier.
US equities moved into positive territory in early afternoon, bouncing back from news of a surprise fall in business activity in the US Midwest, including Chicago.
Further support came from a weak dollar, which makes crude more affordable for buyers using other currencies.
Political tensions related to Iran, OPEC's number two producer, added support, analysts said, ahead of a meeting between diplomats from the five permanent UN Security Council members as well as Germany and Iran's nuclear negotiator.
