China's upbeat economic news perked up investors demand for oil futures, nudging higher oil prices in Asia and North America as the world's fast emerging giant economy gave hints of further growths and more fuel consumption that effectively dampened the supply jitters brought by the closure of a key Canadian pipeline that supplies crude to US refineries.

Also, the earlier assertion of solid inventory in the United States easily soothed concerns of any shortfalls in supply as light sweet crude for October futures increased by 74 cents of one percent to end up at $US77.19 per barrel on the New York Mercantile Exchange while London's Brent crude gained by 91 cents or 1.2 percent to close at $US79.07 per barrel on the ICE future exchange.

Rallies seen on Monday were largely influenced by the almost 14 percent production growth reported by China as oil and industrial metal futures jumped in Asia with notions of ramped up demand for commodities in the coming months and further enhanced by positive financial developments in Europe that saw global central banks agreeing on longer periods of time to meet lending regulations and limits.

Analysts said that the reduced uncertainty provided by financial institutions' helpful new policies would automatically lead to considerable gains for equities and oil, the latter seemingly unfazed by the threat of supply cutbacks when the Enbridge pipeline broke down and effectively severed its supply 670,000 barrels per day on US refineries.

While work is being done to reroute the pipeline, Dow Jones analysts had predicted that US oil inventories would plummet by as much as 2.6 million barrels by the second week of September with gasoline shedding supplies of up to 1.1 million barrels that would lead to declines of 0.6 percent to 87.6 percent of refinery capacity utilisation.

Elsewhere, analysts said that global stocks were far more stretched and the inevitable price hikes would soon transpire as the US supplies started carrying the worldwide pressure on supplies, with the Goldman Sachs Group predicting that oil price range could hover between $US85 and $US95 in the latter part of 2010, by which time "the tide had turned against the US oil market."