Towards the end of last week, oil prices have recovered amid a weaker dollar and positive data from Europe. New York's main contract, light sweet crude for delivery in September, mounted by over a dollar to US$78.3, while London's Brent North Sea crude for September rose by over 1.5 dollars to US$77.5.
The euro has gained, rising past the US$1.31 mark, its best since early May, as reports of intensifying eurozone confidence and improvement in Germany's employment, percolates. News of an unexpected fall in first-time claims for US jobless benefits has bolstered investors to seek out currencies such as the Euro, propping up the Euro.
A stress test on European banks pointed to a recovery in condition, gradually raising clouds of fear from the market. New claims for US unemployment benefits saw an unexpected drop to 457,000, while jobless claims fell by 11,000 in the week ending July 24.
Mid week, oil prices dropped sharply after the US Department of Energy reported tat crude oil inventories spiked by 7.3 million barrels last week in the United States. This rise, the strongest weekly increase since October 2008, indicates sluggish demand in USA.