World oil prices has moved up more than 5 percent on Tuesday on encouraging news that European fiscal managers are working overtime on a bailout fund to contain the region's debilitating sovereign-debt crisis.

Crude for November delivery reached $US4.21, or 5.3 per cent, at the New York Mercantile Exchange, eventually finishing at $US84.45 a barrel, the highest since May 9.

While in London's ICE Futures Europe exchange, Brent North Sea crude for delivery in November rose $3.20 to finish the day at $107.14 per barrel, its biggest since August 10.

The uptick in crude oil prices likewise showed a parallel growth in the shares of oil producers, such as Exxon Mobil Corp. Oil, up $1.19, or 1.7 percent, to finish at $72.91; Chevron Corp. grew $2.05, or 2 percent to $93.54; BP climbed $1.01, or 2.7 percent, to $37.94; Royal Dutch Shell hiked 74 cents, or 1 percent, to $63.93; and, ConocoPhillips at 13 cents, or less than 1 percent, to $64.26.

Oil prices have been on a decline for the year, but have been steadily rising since hitting a low of $79.30 a barrel in August.

But crude prices again took a beating last week when it plummeted more than $US8 a barrel on the New York market. On Monday's opening, it posted a few cents gain.

Analysts said crude prices are slowly recovering, and could gain further if eurozone leaders will fast track the bailout plan it is working that will help ease the region's massive fiscal calamity.

A weakened U.S. dollar also contributed to the Tuesday rise of oil.