Brent oil rose towards $110 a barrel on Wednesday on expectations that a budget crisis in the United States will be resolved, heading off a recession threat to the world's top oil consumer.
World shares rose to 17-month highs, and the euro gained on growing confidence that a U.S. pact on spending and taxes will be reached before a year-end deadline, avoiding the so called fiscal cliff which threatened to tip the country into recession.
A German business survey that showed improving sentiment among investors cemented the more upbeat mood.
Brent crude was up 0.8 percent to around $110 a barrel. It was heading for its highest close in two weeks. U.S. light, sweet crude gained 0.4 percent to around $88 per barrel. (Read More: Is 2013 the Year of $50 Oil and $1,200 Gold?)
That said, we want to hear from you — where will oil go first? $70 a barrel? $100 a barrel?
Vote now in our "Futures Now" poll!