New York's main contract, light sweet crude for delivery in July, has lept by over 2 dollars to US$71.6, while London's Brent North Sea rose to US$71.7. After falling by over 20% in 3 weeks, oil rallied 4%, the best one-day percentage gain since September 30.
Oil prices witnessed a strong rally as sentiments rose with strong performances on world stock markets amid new data indicating a sustained economic recovery in the US energy market. The past two weeks have seen oil prices on a downtrend due to concerns that the eurozone crisis could contaminate global economic recovery. In the stock markets, equities rose after data showed that new orders for US manufactured durable goods rose unexpectedly in April, for the fourth time in five years. New orders for manufactured durable goods such as planes, cars, refrigerators and computers that could last at least three years; increased 2.9% to US$193.9 bln as per a report by the Commerce Department. Also, the US Department of Energy announced a rise in American crude inventories by 2.4 mln barrels in the week ending May 21.