US oil prices jumped to their highest levels in more than a week this evening alongside a broad rally on Wall Street and a report that Japan's economy shrank by less than expected in its last quarter.
The latest price rises all but erased losses from a roller-coaster ride in oil markets last week.
US crude surged $1.44 to $86.82 a barrel. It climbed as high as $87.49 earlier in the day, the highest level since August 5. Brent crude added 84 cents to $108.87.
Oil rose after Japan said its economy shrank at an annualised rate of 1.3% in the April-June quarter - about half of what analysts expected. Crude also gained as stock markets rose and the dollar weakened.
