NEW YORK, USA — OIL prices soared on promising economic news out of Europe and the US.

Benchmark crude yesterday rose US$3.34 ($286.57), or 3.6 per cent, to end the day at US$97.22 per barrel in New York. Brent crude, which is used to price foreign oil that’s imported by many US refineries, rose US$3.09, or three per cent, to finish at US$106.73 per barrel in London.

Major US stock indexes were up around three per cent in afternoon trading.

Prices climbed on encouraging news about the global economy. Germany reported that business and consumer confidence rose unexpectedly in December, and Spain’s borrowing costs plummeted in a debt auction as the country promised more austerity measures to resolve its debt problems.

In the US, retailers said holiday sales jumped last week, while the government reported a surge in apartment construction and building permits in November.

If consumer spending and construction activity continue to grow, demand for oil will likely follow.

PFGBest analyst Phil Flynn said that oil traders are also increasingly concerned about political instability in Kazakhstan, which exports about 1.3 million barrels of oil per day. The Central Asian nation has been battling political protests that have resulted in about 15 deaths in the last month.

Over the weekend, Kazakhstan’s president imposed a state of emergency in one city, and the interior minister said firearms will be deployed in skirmishes with protestors.

“That’s really gotten everyone’s attention today,” Flynn said.

Although Kazakhstan supplies less than two per cent of the world’s oil, petroleum stockpiles are so tight that any disruption could send tremors through oil markets. A rebellion in Libya this year sent oil prices to three-year highs near US$114 per barrel.