Oil prices surged Monday as the market followed stocks higher and traders awaited a key monetary policy meeting in the United States, the world's largest energy consumer.
New York's main contract, light, sweet crude for October delivery, rose 1.20 dollars to 74.86 dollars per barrel.
London's Brent North Sea crude edged up 1.11 dollars to 79.32 dollars.
"There has been some general market optimism around the Fed statement tomorrow," said Jason Schenker of Prestige Economics.
Investors will be closely watching the outcome of Tuesday's meeting by the Federal Reserve when its policymakers decide on the course of monetary policy in the world's largest economy.
The Fed is expected to anchor the fragile recovery by leaving interest rates at historic lows and keeping stimulus spending at current levels.
Oil prices were also given a boost by the stock market. In New York the Dow Jones Industrial Average surged over 160 in late trade, buoyed by confirmation that the US recession ended in June 2009.
"The report that the US recession ended in June 2009 probably helped the psychology," said Tom Bentz of BNP Paribas.
