LONDON, Aug 13, 2009 (AFP) - Oil prices rallied on Thursday amid increased signs of economic recovery which could eventually boost weak energy demand. Brent North Sea crude for delivery in September jumped 1.01 dollars to 73.90 dollars a barrel in morning London trade. New York's main contract, light sweet crude for September, advanced 1.17 dollars to 71.33 dollars a barrel. Oil prices had risen on Wednesday after the Federal Reserve said economic activity was "levelling out". The policymaking Federal Open Market Committee (FOMC) maintained ultra-low interest rates, but said it would gradually end a programme of Treasury bond purchases after completing a 300-billion-dollar scheme in October. The US economy is the world's largest energy consumer and an economic recovery is seen as key to boosting global oil demand after the recession. On Thursday meanwhile, official data showed that the economy of the 16 nations using the euro contracted by just 0.1 percent in the second quarter, as heavy hitters Germany and France unexpectedly emerged from recession. However latest government data on US energy reserves showed oil demand remained weak. The US Department of Energy on Wednesday said crude inventories rose by 2.5 million barrels to 352 million barrels in the week ended August 7, more than triple the amount expected by analysts. It was the third week running of higher crude stockpiles.

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