Energy strategists say oil traders have become excited on the heels of the figures indicating manufacturing activity in the world's largest energy consumer dropped to a nine-month low in August.
Market analysts say traders hope that the Chinese government will intervene by introducing a stimulus plan aimed at reviving the country’s economic growth.
Traders also say the weaker dollar have pushed the prices higher and predict that the US Federal Reserve may drive the oil price tags higher by injecting more cash into its economy.
Crude oil prices in global energy markets have hiked to their highest level since early May, following speculations over the likelihood of China’s intention to introduce a fresh economic stimulus plan.
New York light sweet crude for October delivery jumped to USD 98.01 in Thursday trading, 77 cents higher from Wednesday's closing level.
Meanwhile, Brent North Sea crude for delivery in October climbed USD 1.36 hitting the three-month record of USD 116.27.