U.S. crude oil prices climbed more than 2 percent on Thursday to the highest level in 10 days after better-than-expected employment and manufacturing data brightened the economic outlook.
The number of Americans filing new claims for unemployment benefits fell to a 5½-year low last week, the Labor Department said, and a closely watched index of U.S. manufacturing activity was at its highest level in two years.
U.S. stock markets jumped, with the S&P 500 index topping the 1,700 level for the first time ever.
China's official purchasing manager's index also came in higher than expected and a survey showed euro zone manufacturing returned to growth in July, suggesting the region may pull out of recession this quarter.
U.S. crude outpaced Brent, adding nearly $3 to trade around $108. Brent crude gained more than $1 to $109 a barrel and hit $109.45 intraday, the highest since July 16. It ended July with the largest monthly percentage gain since August 2012.
U.S. gasoline futures were also stronger, climbing 4 cents to reach $3.04 a gallon. Natural gas, however, plunged to a five-month low after the U.S. Energy Information Administration said gas stockpiles rose by more than analysts had expected.
"The main reason is better-than-expected data from China and also the fact that the Fed did not give any hint about ceasing stimulus," said Carsten Fritsch, analyst at Commerzbank in Frankfurt.
The U.S. central bank on Wednesday said the economy continued to recover but was still in need of support, offering no sign it is planning to curb its bond buying at its next meeting in September. That stimulus has broadly underpinned commodity prices.