Oil rose back above $80 today to a fresh seven-week high after stronger-than-expected US and Chinese economic data raised hopes of demand recovery in the world's largest consumers.
China's manufacturing sector gathered momentum last month, the official purchasing managers index (PMI) number showed, providing further evidence that the economy is pulling smoothly out of a second-quarter swoon.
US crude for November rose 63 cents to $80.60 a barrel, adding to an 11.2 per cent gain in September, the largest monthly jump since May 2009.
ICE Brent for November was up 66 cents at $82.97 a barrel, the highest in more than eight weeks.
In the United States, data yesterday showed new jobless claims fell last week, regional manufacturing grew faster than expected and consumer spending was stronger than expected.
The positive economic data has kept the dollar steady after dropping to an eight-month low against a basket of currencies yesterday.
A stronger dollar makes oil less affordable to holders of other currencies.
The market is also watching Ecuador, an Opec member country which typically exports around 300,000 barrels per day of crude, after yesterday's military and police protests thrust the country into political unrest.
Ecuador's state oil company Petroecuador said yesterday its operations had not been affected by political unrest and that the army was reinforcing security at its oil fields.
Reuters