The price of oil rose above $94 a barrel today after European nations agreed on a bailout for Cyprus that saves the country from a financial collapse that would have threatened the euro zone.
Benchmark crude for May delivery was up 77 cents to $94.48 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude rose 50 cents to $108.16 a barrel on the ICE Futures exchange in London.
Cyprus secured €10 billion of rescue loans early today, just hours before a deadline set by the European Central Bank.
The bank had threatened to halt emergency assistance to the country's banks if no agreement was reached.
The deal requires the Mediterranean island nation to shut down its second-largest bank, while all bond holders and people with over €100,000 in their bank accounts will face significant losses.
The action is being taken to raise €5.8 billion that Cyprus must provide to supplement the rescue loan.
The development comes on top of optimistic expectations for the US economy. Analysts said that US durable goods orders are expected "to record an impressive gain in February" when the data is released tomorrow. They also said that they expect to see fourth-quarter GDP revised sharply higher.