Oil jumped to near $91 a barrel today, lifted by a broad stock market rally amid optimism about a US economic stimulus plan aimed at warding off a recession in the world's top energy consumer.
US crude rose $1.44 to $90.82 a barrel by 15.52pm, after rising as high as $91.38. It had jumped nearly 3 per cent yesterday to settle at $89.41 a barrel.
London Brent crude was $1.63 cents higher at $90.70 a barrel.
Yesterday's stimulus plan pushed up global stock indexes, giving oil a boost despite mildly bearish US weekly inventory data which showed that domestic crude supplies rose 2.3 million barrels last week, slightly above analyst expectations.
US gasoline stocks swelled by 5 million barrels, well above forecasts, while distillates slipped 1.3 million barrels, the EIA said.
Growing fears the subprime mortgage crisis could tip the United States into a recession and depress oil demand growth have sent prices plunging from peaks above $100 a barrel in early January.
Analysts said funds and speculators had been closing out their positions in oil and commodities to cover margin calls and to finance losses in equity markets, contributing to losses earlier in the week.
The International Energy Agency's executive director expressed concern about the strength of the world economy and said oil producers could help the situation by pumping more.