Oil prices rose today as risk aversion faded and concerns over a double dip recession eased.
Equity markets rallied and rose higher after a tense past week, helping market sentiment pick up, resulting in safe-haven assets such as gold, the U.S dollar the Swiss franc all falling today.
Meanwhile, a meeting scheduled for tomorrow in Paris between German Chancellor Angela Merkel and French President Nicolas Sarkozy gave optimism to investors as speculation rises that they will hammer out a solution to the debt crisis which threatens to engulf the economies of Italy and Spain.
From a brief dip to $84.39, crude oil futures for September delivery has climbed to as high as $87.13 by 14:00 GMT today.
Losses were so substantial last week with crude reaching as low as $75.70, the lowest level in almost a year. It is a good opportunity to buy oil while it is still cheap, though some investors are still cautious as they worry over the euro zone debt crisis and the outlook for global growth.