Oil prices soared this evening as the dollar sank against the euro after Europe's crucial debt crisis deal and the markets welcomed better than expected economic growth in top consumer the United States.
US crude jumped $2.93 to $93.14 a barrel, while Brent crude gained $3.02 to $111.93.
Europe's leaders said came to the euro's rescue overnight with a deal on a €1 trillion bail-out fund and for banks to share the pain of the debt crisis.
In reaction, the European single currency leapt above $1.41 for the first time in seven weeks, and this evening hit $1.42. A weaker US currency makes dollar-priced oil cheaper for buyers using stronger currencies. That tends to stimulate oil demand and prices.
Oil won more support after data showed that the US economy grew 2.5% in the third quarter, boosted by consumer and government spending in the world's biggest oil-consuming nation. The rate of growth was higher than in the second quarter.
Oil prices had slumped on Wednesday as dealers digested fresh signs of weakening US energy demand and awaited the outcome of the Brussels summit.
