NEW YORK, Oct 18: Oil prices Friday rose for a second consecutive day following strong gasoline demand data in the US, as investor entiment steadied in global equity markets.
US benchmark West Texas Intermediate for delivery in November added a modest five cents to $82.75 a barrel on the New York Mercantile Exchange.
European benchmark Brent oil for December delivery advanced 34 cents to $86.16 a barrel in London.
Analysts said the market continued to take a hopeful reading from Thursday's US energy inventory data, which showed gasoline inventories fell 4.0 million last week. "We saw yesterday that demand is very strong, especially gasoline, with more people driving and shopping," said Carl Larry, head of consultancy Oil Outlooks and Opinions.
"We were a little oversold and now the economy looks a bit more stable."
Friday's move came as equity markets in Britain, France and Germany all gained at least 1.8 per cent as investors snapped up bargains following a sharp drop earlier in the week. US equity markets were also solidly higher.
A broader rally of higher-risk investments "has swept up the crude complex with it," said Matt Smith, analyst at Schneider Electric. Since mid-June, US oil prices have fallen about 22 per cent and Brent about 25 per cent amid concerns of a glut.