NEW YORK — Oil prices pushed strongly upward Friday as confidence grew that the G20 would put muscle into the eurozone rescue and US data showed signs of firming growth.
New York's main contract, West Texas Intermediate crude for November delivery, added $2.57 to close at $86.80 a barrel, nearly $4 a barrel higher than a week earlier.
In London, Brent North Sea crude rose $3.58 to settle at $114.68 a barrel, sharply higher than the $105.88 close of October 7.
"Oil prices have rebounded on the firmer tone in equity markets, boosted by the perception of progress in Europe and firmer US economic data," said CMC Markets analyst Michael Hewson.
Prices "are rebounding despite a slew of country and bank downgrades mainly because the markets are hopeful that global leaders are ready to hit the market with a 'bazooka' of borrowed money from the cash-rich emerging markets," said Phil Flynn of PFG Best.
Various news reports had suggested that emerging giants like Brazil and China would be prepared to boost International Monetary Fund resources to lend to the struggling eurozone.
Also helping was the US retail sales data for September, showing a firm 1.1 percent jump from August, a 7.9 percent rise year-over-year, helped by a surge in automobile sales.
The markets would likely take their cues from the meeting of Group of 20 finance chiefs in Paris this weekend, as they seek to bolster the global economy and shore up the European Union response to the eurozone debt crisis.
Meanwhile Russian oil transport monopoly Transneft said it had resumed shipments of oil to China after a temporary halt following a 6.1 magnitude earthquake in Russia's Far Eastern Amur region.
Spokesman Igor Dyomin said there was no visible damage to a terminal and station at Skovorodino, close to the epicenter, which is used by Transneft to export oil to China via the Eastern Siberia-Pacific Ocean pipeline.
The power supply was temporarily disrupted, and some areas of the pipeline had to switch to generator power, he said. It was restored after two hours.
"Teams are walking along the pipeline with inspections," Dyomin said. "We are expecting more shocks."
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