Oil traded above $71 a barrel in Asia today despite a bout of profit taking after a dramatic rally overnight on signs the ailing global economy was on the mend.
New York's main contract, light sweet crude for September delivery, fell 15 cents to $71.43 a barrel, after surging $2.13 in US trade today.
The New York benchmark contract hit an intraday peak of $72.20, its highest level since late June.
Brent North Sea crude for delivery in September was up nine cents to $73.64.
Analysts said data showing that the global economy was improving and good corporate earnings results were helping pushing oil prices higher.
"Oil pricing has been supported by forces in the financial market," said Victor Shum, senior principal at Purvin and Gertz energy consultancy in Singapore.
He cited better-than-expected earnings results by British banks Barclays and HSBC as well as strong performances by the US and Chinese manufacturing sectors.
The US factory sector moved within striking distance of growth in July, according to a key survey, while manufacturing in China hit a 12-month high last month, mainly driven by domestic demand.
A weaker dollar is also boosting oil prices because the commodity is traded in US dollars, making it cheaper for holders of stronger currencies.
