Oil prices rose on Wednesday on the heels of the stock market as concerns for the European economy and despite a report warning the United States' economy was slowing down.
New York's main contract, light sweet crude for delivery in October, was up 58 cents to 74.67 dollars a barrel.
Brent North Sea crude for October gained 43 cents to 78.17 dollars in closing trade.
After Tuesday saw oil prices close mixed over fears for the European banking system, the Portuguese government's successful debt bond auction on Wednesday boosted confidence in the euro-zone economy.
"Oil prices were up initially on the Portugal auction that went very well. With all the fears about a new credit crisis growing in Europe, it made the market feel better," said analyst Phil Flynn of PFG Best Research.
However,"the market out of steam" after the Federal Reserve's latest beige book report said the US economy was slowing down despite continued growth between mid-July and the end of August, Flynn said.
Painting a dour picture of the economy, as expected, the Fed said the recovery continued to be uneven across the country and across sectors.
There was some good news from the manufacturing sector and the slightest of signs that Americans might be returning to the shops.
