Oil prices rose this evening on the latest dose of optimism about European leaders' ability to agree on a plan to address the region's debt crisis at upcoming summits starting this weekend.
European and US stock markets also rose on hopes that the meetings can move the EU closer to resolving the debt problems. A weaker dollar also supported dollar-denominated crude oil prices, traders said.
Brent crude rose 88 cents to $110.64 a barrel, while US crude rose $1.87 to $87.94 a barrel.
Signs of stronger demand for oil, especially distillate fuels, and a tightening supply picture have recently started to provide a boost to oil prices.
US oil consumption in September rose 2.5% to 19.929 million barrels per day, bolstered by rising distillate fuel use, the industry group American Petroleum Institute said.
