Oil races toward $86 a barrel

Oil raced toward $86 a barrel in Asian trade today, extending gains on demand optimism amid signs of a global economic upswing, analysts said.

    
New York's light sweet crude for delivery in May was up 84 cents to $85.71 a barrel. New York crude briefly traded above $85 last week, its highest level since October 9, 2008.

    

Brent North Sea crude for May climbed 72 cents to $84.73 a barrel.

    
Analysts said the market's rally was helped by a string of bullish economic data, including Friday's US jobs report, which showed the biggest growth in three years and raising recovery hopes for the world's largest economy.

    
"Many traders also bought ahead of the long weekend and now we have some momentum carrying the trade forward and pushing prices up," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

    
Investor sentiment was also boosted by last week's data showing the US manufacturing sector grew at a faster pace than expected and a government report that said Chinese manufacturing picked up in March.

    
Manufacturing in the eurozone also defied forecasts in March, with a key index hitting a 40-month high.

    

A weaker dollar which makes dollar-priced commodities like crude cheaper for investors using other currencies have also helped push oil prices higher, analysts said.