Oil rose one percent to more than $70 a barrel on Thursday, clawing back some of the previous session's losses amid exuberance that a global economic recovery is getting underway, while a weak US dollar also lent support. Oil settled down nearly 2 percent on Wednesday after US government data showed larger-than-expected supply increases in gasoline and distillate fuels last week.
US crude for November delivery rose 74 cents to $70.31 a barrel by 0712 GMT. The contract closed $1.31 lower at $69.57 a barrel on Wednesday. London Brent crude gained 81 cents to $68.01. Alcoa's surprise third-quarter profit, along with Australia's better-than-expected unemployment numbers, has rekindled enthusiasm the global recovery is gathering strength, Wang said.
Alcoa Inc posted a surprise profit on Wednesday, thanks to cost cutting and higher aluminium prices after three consecutive quarterly losses, sending its stock 6 percent higher. In Australia, employment surged past all expectations in September and the jobless rate dropped in what might be a turning point months earlier than anyone had thought, pushing Asian shares higher and piling pressure on the greenback.