Oil surges as stocks pump

Oil prices soared on Thursday as some calm was restored to global stock markets following a five per cent rise for shares in China.

Stocks on Wall Street climbed four per cent in the previous session as risk appetite returned after several days of losses.

The upbeat mood sent US light crude higher, with oil for October delivery climbing four per cent to rise above the $40 mark.

Brent crude, the global benchmark, was up four per cent at almost $45 a barrel.

Oil prices are still less than half what they were little over a year ago, when a barrel of crude fetched over $100.

Copper also climbed by two per cent, while mining stocks were among some of the biggest risers as shares rallied in London.

The FTSE 100 index of leading shares added two per cent, having fallen in the previous session.