Oil above $54 on stock market rally

03-24-2009 | AP

Climbing to $50 for the first time this year prices have risen 33 percent this month

Panama Star Benchmark crude for May delivery rose $1.15 to $53.22 a barrel in trading on the New York Mercantile Exchange, continuing its upward momentum. Prices climbed as high as $54.05 earlier in the session.

On Friday, oil ended the week above $50 a barrel for the first time this year, and prices have risen 33 percent this month alone.

In London, Brent prices rose 4 percent, or $2.12, to $53.34 a barrel on the ICE Futures exchange.

"Generally, we've had moderately good economic news of late," said Michael Lynch, president of Strategic Energy & Economic Research. "That's giving people some optimism that maybe demand will be picking up. If the (new banking) plan is effective, so much the better."