Oil broke above $81 a barrel to its highest level in nearly three months today, climbing over 3% as a sharp rise on equity markets and a weak dollar raised optimism about the strength of the global economic recovery.
US September crude rose $2.59, more than 3%, to $81.54 - the highest price since May 5. In London, Brent rose $2.72 to $80.90, the highest level since May 13.
US stocks hit 10-week highs as strong earnings results, better than expected manufacturing data and strong raw materials shares buoyed indexes. European stock markets set the tone early, hitting a three-month high following strong results from leading banks HSBC and BNP Paribas.
Analysts said that US crude looks to have broken out of the $70-$80 a barrel range it traded in for most of the last three months, triggering further buying.
