Oil rose 2% today, breaking a three-day losing streak after government data showed big drops in US inventories and hopes authorities are moving forward to prop up Europe's ailing banking sector.
Brent crude, traded up $2.06 to $101.85 a barrel by 4:32pm GMT after settling down more than 20% from its 2011 high yesterday, which traditionally signals a bear market.
US crude prices gained $2.69 to $78.36 a barrel.
While demand in top consumer the United States remained weak, data from the US Energy Information Administration showed a steep drop in imports last week helped drive crude inventories to the lowest level since January.
Stockpiles of refined products also fell.
The report added to the bullish tone carried over from European trading hours, when crude found support after European finance ministers agreed to examine a way to beef up banks' balance sheets and prevent a full-blown financial crisis.
US data on the labour market and services sector came in stronger than expected, giving support to markets.
"The EIA reported better-than-expected numbers, particularly the crude draw," said Joe Posillico, broker for MF Global in New York.
"The oil markets were already up a lot, moving with the stock market on the ISM services sector data, when the EIA data came in."
