Oil prices rose this morning as worries about Ireland's debt crisis eased and a sharp fall in crude inventories in the United States propped up prices.
US crude was up $1.21 to $81.63 a barrel by lunchtime, while Brent gained $1.28 to $84.55.
Concerns about the euro zone's fiscal health knocked about 8% off US crude's 25-month high last week, sending oil to $80.06 on Wednesday.
Meanwhile, remarks by an academic advisor to the People's Bank of China quelled speculation about a raise in Chinese interest rates, which had hit the oil price.
Zhou Qiren said China should not rely solely on interest rate rises to curb inflation, adding that the government must take steps to deal with the supply-side strains that have been a key factor in pushing up consumer prices.
US crude stockpiles dropped the most in more than 14 months last week, as fewer imports and higher refining rates dented inventories, a weekly government report from the Energy Information Administration showed on Wednesday.
