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Oil prices jump 2pc after optimism raises demand

OIL prices rose more than two per cent yesterday, jumping above $75 (£62) per barrel, as optimism about global economic recovery boosted fuel demand expectations and sent stock markets and the euro higher.

“Follow-through strength in most global equity markets from last week and highest level in the euro in more than a week are forcing renewed buying interest back into the energy complex,” Jim Ritterbusch at Ritterbusch & Associates said in a research note.

Oil traders and analysts have been eyeing a recovery in US demand. After reaching a 19-month high above $87 per barrel in early May, crude futures fell below $65 per barrel later in the month as the European debt crisis unfolded.