Oil rose nearly 2 percent to top $78 a barrel for the first time in three weeks today, buoyed by economic optimism that sent Wall Street to a 2009 high, according to Reuters. Oil was also supported by data showing lower U.S. crude oil inventories, traders said. U.S. crude oil futures settled at $78.05 a barrel, up $1.38. ICE Brent crude futures settled at $76.31, up 86 cents. "No doubt there was continued bullish momentum after yesterday"s inventory data. Bullish technical action, although there was light trading volume. Equities strength and weaker dollar helped to support also," said Tom Bentz, analyst at BNP Paribas Commodity Futures Inc, in New York. Wall Street rose Thursday after government data showing a drop in initial jobless claims and growth in durable goods orders in November boosted economic optimism. Oil traders watch macroeconomic data for signs of economic recovery in the world"s top energy consumer, the United States. Thursday"s gains extended a more than 3-percent rise on Wednesday due to government data showing a larger-than-expected fall in U.S. crude inventories last week. Inventories of oil products, such as gasoline and heating oil, also fell. Oil inventories have fallen elsewhere in the world over the past week, including Northwest Europe and Japan, the world"s third largest oil consumer. But some analysts said that the extremely thin volumes on the NYMEX artificially supported prices ahead of the holiday weekend.
