As the US economy continues its slow recovery, oil prices barrelled through the $US75 per barrel with the light, sweet crude settled at $US1.11 to fetch $US75.02 a barrel on the New York Mercantile Exchange while Brent crude traded at $US0.56 to end up at $US76.91 a barrel on the ICE future exchange.

Economists said that the rebound pushed oil prices back to the range between $US70 and $US80 a barrel, which has been its comfort zone for quite a number of months now, as swinging economic indicators maintained their influence in the movement of crude futures.

Despite the seemingly solid demand for oil, traders remained wary of further hiccups as the health of the US economy still raises grave concerns while the incoming peak season of Atlantic storms adds more worries as production could be affected by severe weather disturbances.

However, latest data furnished by the US government delivered some optimism as new claims for unemployment benefits declined in July by up to 6,000 while pending homes sales shot up by 5.2 percent in the same month after the retreats it saw for the last two months.

Further boosts were supplied by the manufacturing sector as commercial airplanes and other transportation products picked up considerable gains, with experts noting that the rise forebodes well for the oil industry as the transportation markets were traditionally known for their heavy consumptions of oil and fuel.

The influx of some bits of encouraging news, according to some strategist would nudge many traders to rub in some risks though some experts have noted that the push could prove only momentary as most traders were generally watchful of the sluggish US economy, fears that were further compounded by the onset of the hurricane season and kept a tight lid on oil prices.