Oil prices headed higher towards $72 a barrel today, spurred by hopes that the worst is over for the ailing global economy.
New York's main futures contract, light sweet crude for delivery in July, advanced 44 cents to $71.81 a barrel. In early London trade, Brent North Sea crude for August delivery climbed 43 cents to $71.49.
Positive US data and stronger demand has energised the market in recent days, analysts said. The US Department of Energy earlier this week reported a sharper-than-expected fall in crude inventories, suggesting a hike in demand.
Meanwhile, a US business research firm said yesterday that the index of leading economic indicators, a measure of conditions in the coming months, increased 1.2% in May from the previous month, beating market expectations. The index had been on a downward trend since hitting a peak in July 2007, the Conference Board said.
Developments in the recession-hit US economy are closely monitored because it is the biggest in the world and is a major buyer of the world's exports.
Oil prices touched multi-year lows of around $32 in December as the economic slowdown crushed demand for energy but have slowly clawed back since.
