Oil at highest level since early August

Oil rose on Wednesday on renewed optimism about the US economy, as traders took their cue from higher stock prices.Benchmark West Texas Intermediate crude for September delivery rose $1.25 to $87.89 per barrel in midday trading on the New York Mercantile Exchange.Brent crude, which is used to price many international oil varieties, increased by $1.74 to $110.87 per barrel on the ICE Futures exchange in London. Rising stock markets and a weaker dollar pushed up oil. Stocks were higher on a series of better-than-expected earning reports from companies such as Target, John Deere and Staples.The price of Opec basket of twelve crudes stood at $105.42 a barrel, compared with $104.78 the previous day, according to Opec Secretariat calculations. From / Gulf Today