Crude prices surged on Monday as market sentiment turned positive on hopes for a solution to the European debt crisis and expanding Chinese manufacturing data, with the New York benchmark returning back above 90 dollars a barrel.
Investors still focused on European news. The region's leaders held a summit on Sunday, talking about a solution to the ongoing debt crisis. Although there were still differences between the two largest eurozone countries -- Germany and France, crude markets were still expecting that a concrete deal would be reached by Wednesday.
China's manufacturing sector expanded in October after three straight months of contraction, according to HSBC. The manufacturing rally in the world's second largest oil-consumer eased concerns about its economic slowdown and was translated into a rising oil demand worldwide.
Adding to the gains, the dollar fell against its major counterparts, making the crude more attractive for investors holding foreign currencies.
Besides, crude prices followed the U.S. stocks and rose, driven by strong U.S. earnings.
Light, sweet crude for December delivery gained 3.87 dollars, or 4.43 percent to settle at 91.27 dollars a barrel on the New York Mercantile Exchange, the first time above 90 dollars since Sept. 13.
In London, Brent crude for December delivery also rose and last traded around 111 dollars a barrel.