US Light crude oil futures for July delivery was at $73.65 a barrel at midday Singapore time on the NYMEX.

Crude supplies fell more than expected last week, dropping by 1.4 million barrels, the American Petroleum Institute said late Wednesday. Analysts had expected an increase of 1.0 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

Meanwhile, the Dow Jones industrial average rose 2.2 percent Wednesday and all major Asian stock markets gained in early trading on Thursday.

“The driver for oil prices at the moment is economic recovery and there’s some evidence of it in the US and UK, but overall the concern is the eurozone debt crisis,” said CMC Markets analyst Michael Hewson.

“Jittery oil trading is here to stay for now as we continue to track the broader markets and swings in global risk sentiment,” said VTB Capital analyst Andrey Kryuchenkov.

US Light oil prices are trading back above $77 today from three month lows as commodities get a boost and gold prices hit the $1200 mark after the EU agreed to protect the bloc’s debt-stricken nations with a new EU debt fund.

US Light crude oil futures for June delivery was at $77.17 a barrel in Asian trading, after falling more than $11 or about 13 per cent last week.

Gold prices rose as high as $1210.35 per oz last week, and has its sights firmly set on the December 2009 record high of $1226.10 per oz, traders said.