Oil jumps nearly 9 percent as G20 deal boosts markets

NEW YORK (Reuters) – Oil rose nearly 9 percent to top $52 a barrel on Thursday, in line with a broad rally in global markets on hopes actions agreed at the G20 summit in London would restore global growth.

World leaders agreed a trillion-dollar deal to combat the deepest economic downturn since the Great Depression, and signed off on plans to commission blacklists of tax havens and tighter rules for hedge funds.

U.S. stock markets jumped after the deal and on changes in bank accounting rules.

U.S. crude settled at $52.64, up $4.25, or 8.78 percent. London Brent crude gained $4.31, or 8.9 percent, to settle at $52.75 a barrel.

“The current crude oil market rally is associated with some optimism and expectations emerging from the G20 meeting in London,” said Kyle Cooper, director of research at IAF Advisors in Houston.

Reuters