Oil price hike, again!

Oil prices climbed as a tentative resolution to the U.S. debt ceiling crisis eased concerns about a potential credit downgrade or default for the world's largest oil consumer.

Delays to seven August-loading cargoes of North Sea Forties crude, the main component of the benchmark for over half the world's oil, were also supporting Brent futures. At one point, the European benchmark had climbed 3.1% to hit a 6½-week high of $120.40 a barrel, but quickly pulled back.

Ahead of the New York day, the front-month September Brent contract on London's ICE futures exchange was up $2, or 1.7%, at $118.74 a barrel. The front-month September contract on the New York Mercantile Exchange was up $1.22, or 1.3%, at $96.92 a barrel.

Oil prices rebound on weak dollar, eurozone draft deal

Oil prices rebounded Thursday as the dollar sank against the euro on news of a draft eurozone summit deal to provide loans on improved terms to debt-ridden members like Greece, Ireland and Portugal.

New York's main contract, West Texas Intermediate (WTI) light, sweet crude for delivery in September, rallied $1.13 to $99.53 a barrel, after briefly breaching the psychological level of $100 for the first time since June 10.

Brent North Sea crude for September added 48 cents to $118.63.