Oil climbs to dearest for six months

Oil rose further above $60 a barrel today on growing hopes the worst of the global recession may be over.

Crude was up 60 cents to a six-month high of $60.70 a barrel in New York and up 33 cents to $59.25 in London, having been around $35 as recently as March.

Commodities markets have closely tracked the stock market in recent months as dealers seek signs of economic health. The FTSE 100 index has risen more than 25% since its year-low of 3512 in March.

"Oil prices are mostly tracking stocks," said Michelle Kwek, an analyst at Informa Global Markets. "The move from $50 to $60 is quite abrupt. I don't think oil prices can go much higher at this point."

Oil peaked at a record of $147 a barrel in July but fell below $33 in December as the financial crisis plunged the world into recession.

The International Energy Agency today warned of a surge in oil prices over the next three years due to a lack of investment in energy in the downturn.