Crude Prices End Higher on Hopes of Rising Demand

Crude prices ended higher on Thursday on rising hopes that the demand for oil was picking up along with the economy.

Light, sweet crude for July delivery gained 34 cents to settle at 71.37 U.S. dollars a barrel on the New York Mercantile Exchange.

Oil got support from separate reports suggesting the U.S. economy had bottomed out, which would trigger a rebound in oil demand. According to the latest data, the index of U.S. leading economic indicators rose in May and the unemployment rolls took largest drop in seven years.

The U.S. Energy Department's Energy Information Administration (EIA) reported Wednesday that the crude stockpiles dropped by 3.9 million barrels last week, which was also viewed as a positive sign of demand recovery in the United States, the world's biggest oil consumer.

Adding support to energy markets was the news that a Royal Dutch Shell PLC pipeline was destroyed by militants in Nigeria, stirring supply concerns.

In London, Brent crude for August delivery rose 21 cents to 71.06 dollars a barrel on the ICE Futures exchange.