Benchmark crude for August delivery added $2.02 to settle at $61.54 a barrel on the New York Mercantile Exchange.
In London, Brent prices rose $2.23 to settle at $63.09 a barrel on the ICE Futures exchange.
During the past few weeks, crude fell from its peak and has loitered near $60 a barrel as America's expanding population of unemployed workers left doubts about a quick economic recovery.
A weaker dollar combined with a rally in equities markets has kept oil prices from falling further, however.
The Dow Jones Industrial Average and The Nasdaq composite index were up about 3 percent in afternoon trading.
Crude barrels, which are traded in dollars, go up in price as the dollar falls and foreign investors find they have more buying power.
Investors also see crude as a safe haven from inflation, and they've pumped money into oil futures on the expectation that oil will get more expensive as the economy improves.
Meanwhile, the Energy Information Administration reported Wednesday that the country's supply of crude oil dropped more than expected last week, falling by 2.8 million barrels.
However, the U.S. is still swimming in surplus oil. It's total inventory of 344.5 million barrels is 16.5 percent above last year's levels.
Inventories of gasoline and distillate fuels, such as diesel and heating oil, also rose last week. Rising world stock markets also propped up crude prices, with major exchanges logging gains in the wake of better-than-expected earnings reports from Intel and Goldman Sachs.
Trader and analyst Stephen Schork said prices could swing either way in the next few days, setting a longer-term trend.
In other Nymex trading, gasoline for August delivery jumped by 6.15 cents to settle at $1.7081 a gallon and heating oil added 7.02 cents to settle at $1.5821 a gallon.
Natural gas for August delivery fell by 14.6 cents to settle at $3.283 per 1,000 cubic feet.
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