Reuters | 06 May 2009 | 02:55 PM ET
Oil settled above $56 a barrel after news that private sector job losses slowed in April and government data showing an unexpected drawdown in gasoline stocks last week boosted hopes for a turnaround in the economy.
U.S. light, sweet crude traded up $2.50, or 4.64 percent, to settle at $56.34, after earlier reaching a fresh 2009 peak of $56.43 a barrel. London Brent crude also traded higher.
U.S. private sector job losses slowed in April as employers cut 491,000 from the salary rolls versus an expected loss of 650,000, a signal that the economy may be on its way to recovery.
"Recent 'light at the end of the tunnel' data in terms of the economic recovery has translated into a modest price recovery in the complex, independent of any fundamental statistics, which are still on the 'dark side'," said Jay Levine, a broker at Enerjay in Portland, Maine.
U.S. gasoline stocks declined unexpectedly last week, falling 200,000 barrels to 212.4 million barrels, the Energy Information Administration said on Wednesday.
The EIA reported that crude inventories increased 600,000 barrels last week to a fresh 19-year high at 375.3 million barrels, a smaller build than expected.
"Today's numbers weren't as bearish as market expectations and since the recent rally is based on the economic picture improving, so too are prices," Levine said.
