World oil prices extended yesterday's gains on the back of data showing a drop in US stockpiles -- indicating improved demand -- and expectations that a Russia-OPEC output cap deal will be kept in place.
The market was also propelled after OPEC kingpin reportedly stated it wanted crude prices to top USD 80 per barrel as it prepares for a gigantic listing of part of its state oil company.
Tensions in the oil-rich Middle East also kept prices elevated.
"Saudi Arabia still calls the shots on global oil markets, and it is increasingly obvious the Saudis are comfortable with oil at USD 80 or more," said Interactive Investor analyst Lee Wild.
"Add a drop in weekly US oil reserves to the mix and the only way for crude prices is up." In early morning deals, oil surged to summits last seen in November 2014 before paring gains.
London Brent struck USD 74.44 per barrel and New York crude touched USD 69.27.
European equity markets meanwhile diverged amid lingering fears over Syria and a possible China-US trade war, but London rose 0.2 per cent despite news of sliding March retail sales.
The British capital's benchmark FTSE 100 index was given a shot in the arm from media reports that Japan's Takeda Pharmaceuticals was mulling a takeover tilt at Shire.
Shire, which is based in Ireland and listed on the London stock market, saw its share price rocket 6.19 per cent to 3,986.5 pence.
Both companies have yet to comment on the latest takeover speculation, but Takeda had stated in March that it was considering the purchase of Shire.
Fresh hopes that Donald Trump and North Korea's leader Kim Jong Un will hold a historic summit within months also provided some much-needed optimism.
The positive trading environment is a far cry from the unease felt at the start of the week after US-led strikes on Syrian targets -- in response to an alleged chemical attack -- sparked worries of a confrontation with Russia, which is an ally of the Damascus regime.
However, reports have suggested Russian President Vladimir Putin is looking to ease tensions as he faces fresh sanctions.
China's announcement of a timetable to remove restrictions on foreign ownership in its car market, the world's biggest, also lifted optimism that a simmering trade war with the United States can be avoided.
Tough rules on doing business in the country's auto sector had been a major source of anger for Trump, who has already threatened tariffs on billions of dollars of Chinese imports in recent weeks as part of his "America First" protectionist agenda.
However, in its quarterly report on the US economy, the Federal Reserve warned there were concerns about the trade tensions among businesses and farmers, who had seen prices rise already.
The central bank's Beige Book report said the world's top economy continued to see moderate growth and it expected to lift interest rates twice more this year, having already hiked them in March.
Meanwhile, the British pound struggled to bounce back against the dollar after diving from post-Brexit vote highs on data Wednesday showing a surprise drop in British inflation.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)