London: Brent oil prices soared above USD 61 this week for the first time this year, aided by upbeat news on Ukraine and Greece and by rebounding economic growth in eurozone powerhouse Germany.
Elsewhere in commodity markets, India overtook China as the world's top consumer of gold, according to newly published industry data.
OIL: Crude oil prices rallied above USD 61 on easing tensions surrounding Greece and Ukraine, and as the global economic outlook brightened.
"Prices managed to climb ... As investors reacted positively to the announcement of a ceasefire between Russia and Ukraine after talks mediated by Germany and France proved successful," said Sucden analyst Myrto Sokou.
"Appetite for risk assets was boosted further by the progress between Greece and its creditors regarding any potential renegotiation of the bailout package."
European stock markets also jumped higher today, with Germany's main index breaching 11,000 points for the first time as Greece appeared closer to a possible overhaul of its international bailout.
Sentiment was given another boost as official data showed the German economy expanded surprisingly strongly in the fourth quarter of 2014, driven by robust consumer spending.
In the period from October to December, German gross domestic product expanded by 0.7 per cent, bringing full-year growth to 1.6 per cent.
Economic activity in the eurozone also picked up slightly, expanding by 0.3 per cent in the fourth quarter and 0.9 for all of 2014.
Crude futures had risen sharply yesterday, gaining almost USD 2.50 on reports that leading petroleum producers are curtailing investment.
In a topsy-turvy week for the oil market, prices fell sharply on Wednesday with New York crude sliding below USD 49, as swelling US inventories added to the global supply glut.
The US stockpiles report showed crude reserves standing at an 80-year high for this time of the year.
Oil prices have been under pressure for months, plunging about 60 per cent to just over USD 40 between June and late January.
However, they have recovered slightly in recent weeks as the number of drilling rigs has fallen and oil companies such as Total and Royal Dutch Shell trimmed some investment.
Crude futures also shot higher last week as data revealed production cuts that could curb the global supply glut.
By today on London's Intercontinental Exchange, Brent North Sea crude for delivery in April leapt to USD 61.19 a barrel from USD 58.08 for the March contract one week earlier.
On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for March rallied to USD 52.70 a barrel compared with USD 50.48.
Gold prices fell as many investors shunned the safe haven asset amid easing global tensions, while India overtook China as the top world consumer of the metal.
"Gold has come under pressure from various sources, not least due to the lack of safe haven demand," noted analyst Fawad Razaqzada at trading site Forex.Com.
China lost its place to India as the world's biggest gold consumer in 2014, sector data showed yesterday, hit by collapsing jewellery demand after one year in the top spot.
Indian gold demand sank 14 percent to 842.7 tonnes last year from 2013, but Chinese demand slumped 38 per cent to 814 tonnes, the World Gold Council (WGC) said in a report.
