Economic optimism is back, oil rises over $73

NEW YORK: Oil prices rose above $73 a barrel on Friday amid lingering optimism that the recession was ending, spelling a rebound in ailing world energy demand.

US light crude for October gained 66 cents to $73.15 a barrel by 21:30 pm locally. London Brent rose 64 cents to $73.15 a barrel. The strength extends Thursday���s $1.06-gain on the back of better-than-expected GDP and jobs data in the US, the world���s largest energy consumer.

Adding to the optimistic sentiment, data on Friday showed US consumer spending rose in July and the UK economy shrank slightly less than expected in the second quarter.

���The vast majority of economic data that continues to circulate around the media airwaves is positive and suggestive that the worst is definitely over and the recovery has likely begun in most economies around the world,��� said Dominick Chirichella, senior partner, Energy Management Institute, Point Pleasant, New Jersey.

Some analysts said stronger economic data in the short-term could not overcome a gloomier long-term outlook. ���Despite our confidence in the recovery process over the next six months, there is precious little indication from the energy side that industrial activity in the US is recovering,��� analysts at JP Morgan wrote in their Oil Markets Weekly note.