World oil prices rallied today as traders snapped up cheap crude after European and US debt strains pushed the market down yesterday, analysts said.
New York's main contract, light sweet crude for delivery in August, rose $1.78 to $97.71 a barrel.
Brent North Sea crude for September delivery added $1.14 to $117.19.
Prices slumped yesterday - with New York crude falling 1.35% - as traders fretted over the US and European debt crises as officials try to agree a second bailout for Greece.
Euro zone leaders were preparing for an emergency summit on Thursday to explore methods of preventing a Greek default, which could have destabilising effects on larger European economies.
In the United States, the world's biggest oil consumer, senators were struggling to bridge a deep partisan divide and forge a compromise deal to raise the federal government's debt ceiling by 2 August to avert a potentially disastrous default.
