Oil prices rose above $86 a barrel in New York for the first time in three days following hopes that economic recovery will stimulate fuel demand.

For May delivery, US crude fell by 95¢ to $86.34 a barrel, while London Brent increased by 92¢ at $85.73 at 9.15am GMT, reports Bloomberg.

Oil is heading for a second weekly gain as concern over a Greek debt default lessens and US retail sales surge.

The dollar dropped to $1.3415 against the euro from $1.336 yesterday.

The US Energy Department said the US oil refineries raised operating rates to 84.5% of capacity last week, a six-month high.

OPEC will ship 23.24 million barrels a day in the four weeks ending 24 April.