Oil prices rose on indications of recovery from the global recession, prompting optimism that fuel demand will rise, Bloomberg has reported.

Crude oil for 2009 August delivery rose as much as $0.50, or 0.8%, to $60.19 a barrel on the New York Mercantile Exchange.

The contract was traded at $60.02 at 10.21am Singapore time. On 13 July it dropped $0.20 to $59.69 a barrel – the lowest settlement since 19 May 2009.

As US and Asian stocks have gained, the oil price has increased from an eight-week low.

China’s economy is expected to have expanded 7.8% in the second quarter of 2009 as record lending and surging investment drove a rebound, according to a Bloomberg News survey.

Crude oil supplies in the US dropped 1.8 million barrels in the week ended 10 July from 347.3 million the previous week, according to a Bloomberg News survey of analysts before an Energy Department report due out on 15 July.

Stockpiles in the week ended 3 July were 18% higher than a year earlier.

The US gasoline inventories forecast report increased 750,000 barrels last week, according to a Bloomberg News survey of analysts. It would be the fifth straight gain.

Gasoline for August delivery increased as much as 0.98 cents, or 0.6%, to $1.6492 a gallon in New York.

Brent crude oil for August 2009 settlement increased as much as $0.62, or 1%, to $61.31 on London’s ICE Futures Europe Exchange. It ended the session on 13 July at $60.69.