Oil Hits 10-Month High, May Keep Moving Up

New York, NY, Aug. 24, 2009--Oil rallied to set a 10-month high toward $75 a barrel on Monday, supported by optimism that an economic recovery will spur a rebound in global energy demand.

Euro zone industrial new orders rebounded more than expected in June against the previous month, adding to signs of recovery. China's implied oil demand rose 3.5 percent in July from a year earlier.

U.S. crude rose 60 cents to $74.49 a barrel by 9:49 a.m. EDT. The contract climbed as high as $74.81, the highest intraday price since Oct. 21. Brent crude gained 16 cents to $74.35.

In a further indication the recession is waning, a report from the Federal Reserve Bank of Chicago showed on Monday U.S. economic activity improved again in July from extremely weak levels earlier this year.

A string of positive economic data from various countries and rallying stock markets helped lift oil prices by 9.5 percent last week. Crude is up more than 65 percent in 2009 and may head higher still, according to analysts.