Oil prices rose nearly 5.8 percent on Thursday, fueled by a rally on Wall Street and data showing that the number of workers filing new claims for unemployment benefits fell last week. US crude rose $2.86 to settle at $52.24 a barrel whileLondon Brent rose $2.47 to $54.06. OPEC has agreed to slash 4.2 million bpd of crude output since September to counter falling prices and match slumping world demand. Crude oil prices surged Thursday in New York, boosted by a strong Wall Street rally ahead of the three-day holiday weekend driven by hopes for a recovery in the financial sector. “The only thing supporting oil prices is the stock market,” said Andy Lipow of Lipow Oil Associates. Major Asian and European stock markets staged rallies Thursday and US shares were powering higher in late trade, fueled by US banking giant Wells Fargo's projection of “record” three-billion-dollar net profit for the first quarter. Investors also appeared to be encouraged by government actions to stimulate flagging economies and unblock a credit crunch. Oil prices had also climbed on Wednesday on weekly Energy Information Administration data showing a smaller-than-expected build in US crude inventories and a big slump in distillate stocks. “The energy complex finished this short week on a stron note, apparently responding to renewed economic optimism in the form of a solid advance in the stock indexes,” said Jim Ritterbusch, president of energy consultancy Ritterbusch & Associates in Galena, Illinois. US stock markets jumped around 3 percent on Thursday after solid earnings from Wells Fargo fed hopes that stability may be returning to the banking sector. Markets were also bolstered by US data showing fewer workers than expected filing for jobless aid last week. Oil has tracked equities markets closely this year as investors seek signs of a potential economic recovery that would boost energy demand.
