World stocks extended their best run of the year on Thursday, as a rise in oil prices and confident talk that EU leaders will reach a deal that will help keep Britain in the bloc outweighed concerns about the state of the global economy.
U.S. crude prices jumped 12 % on Friday after a report once again suggested OPEC might resort to a production cut to reduce the world glut, and resilient stock markets and the euro added to the risk appetite in oil.
U.S. oil prices fell for a six straight day on Thursday, approaching 12-year lows hit last month, weighed by brimming crude inventories and a Goldman Sachs forecast that prices would remain low and volatile until the second half of the year.
Stocks advanced in Europe and Asia on Thursday, with the focus on energy companies as speculation U.S. interest rates may not rise at all this year left the dollar nursing hefty losses and oil held most of the previous day's big gains.
The myth that low oil prices are always a positive for the economy is being shattered with fear that the crash in oil could bring down the economies of producing nations, big oil companies and the global economy.