Oil prices jumped above USD 50 after the Federal Reserve moved to inject another trillion dollars into the US financial system to boost the world's biggest economy.
New York's main futures contract, light sweet crude for delivery in April, ended USD 3.47 higher from yesterday's close to USD 51.61 per barrel, topping USD 50 for the first time in four months.
In early trading, the contract surged to USD 52.25 - the highest level since 28th November, 2008.
Brent North Sea crude for May delivery rose USD 3.01 to 50.67 in London after breaching USD 51.
Analysts attributed the price jump to Wednesday's announcement by the US Federal Reserve that it would pump USD 1.15 trillion into the financial system. The move also has pulled down the US dollar against key currencies.
"You need to put this action in the context of what has happened in the last few weeks in the market. There has been a shift in market sentiment," said Constanza Jacazio of Barclays Capital.
"From a market where demand was the only driver of price action and sentiment, there seems to have been a shift in a more balanced view," he said.
Crude futures had slid on Wednesday on news of a larger-than-expected increase in US energy reserves that highlighted weak American energy demand, but trimmed losses after news of the Fed plan.
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