World oil prices rallied as traders tracked rising equity markets ahead of a key US inventories report.
US crude for August delivery added $1.53 to $73.51 per barrel.
Brent North Sea crude for August gained $1.50 to $72.95.
VTB Capital analyst Andrey Kryuchenkov said that the oil market was responding to 'a rebound in equities.'
European stock markets recovered late, bouncing back into positive territory after initial gains on Wall Street.
'This turnaround (in equities) was driven mainly through an upbeat statement from US bank State Street, which forecast that its second quarter earnings would beat market expectations,' said City Index analyst Joshua Raymond.
'This has raised optimism that the forthcoming bank earnings season in the US will tread a similar path and outperform too.'
Earlier in the day, oil prices fell as the market was weighed down by the stronger dollar and downbeat US economic data.
