Oil Prices Rising on Optimism About Economy

New York, NY, April 3, 2009-- Oil prices rose above $53 a barrel Friday, extending a rally fueled by market optimism that crude demand may rebound if the U.S. economic downturn bottoms out soon.

Benchmark crude for May delivery rose 41 cents to $53.05 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. The contract rose $4.25 on Thursday to settle at $52.64.

In London, Brent prices rose 46 cents to $53.21 a barrel on the ICE Futures exchange.

Oil prices have bolted from below $35 a barrel six weeks ago, riding a wave of improving investor sentiment that the worst of the U.S. recession may be over. Crude prices have mirrored a surge in stock markets, with the Dow Jones industrial average up more than 20 percent during the last month.