Oil prices on big bounce upwards

Sharply higher global stocks have pushed oil prices higher, clawing back almost all of Wednesday's big falls. US light crude was up $3.66, or almost 6%, to $67.01 a barrel, while London Brent was ahead by $3.68, at $70.21.

US light crude slumped $3.88 on Wednesday after figures showed a rise in US oil stockpiles, indicating too much supply in relation to demand. Renewed confidence in stock markets, sparked by a series of encouraging corporate results, caused the rebound.

With Japan's Nikkei ending up 0.5%, Europe's main markets closing about 2% higher and the Dow Jones in the US up 1.7% by mid-afternoon, investors' confidence in future oil demand returned.

But some analysts expressed concern at the volatility in the oil price, particularly as the bounce was sparked by sentiment rather than oil related news.

"You need to really worry about a market that sells off on a very large build of supply one day, and then rebounds on no headline at all," said analyst and trader Stephen Schork.