The price of oil reached a 2009 record of $75 a barrel on Tuesday afternoon, recouping earlier losses that saw US crude fall to $73.83 in the morning.
The price of oil ended lower on Tuesday, falling back from an intra-day high of $75 a barrel - the highest so far this year - after profit taking.
The bounce followed figures showing growing confidence in the US housing market - house prices rose in June for a second month running.
US light crude ended the day down $2.32 to $72.05, while London's Brent dropped $2.44 to settle at $71.82.
London Brent crude climbed by 31 cents to trade at $74 a barrel.
Prices had earlier risen following figures showing an improvement in US consumer confidence.
Share prices also climbed as Ben Bernanke was re-appointed head of the US Federal Reserve.
Oil prices hit a record $147 last summer before falling to just above $30 a barrel at the start of this year.
"We continue to see the market track global markets to look for some more green shoots," said analyst Andrey Kryuchenkov from VTB Capital.
Prices have since recovered as the global economy has pulled back from recession.
The rise takes oil prices to their highest level in ten months.
The morning price drop was linked to falls in the Asian stockmarkets and anticipation of weaker demand following the end of the summer driving season in the US.
US light crude hit a record high of $147 a barrel in July 2008, falling back to just above $30 a barrel at the start of this year, as the global recession worsened.
