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Oil Continues to Rise As China Backs Europe

Oil continued to rise Thursday as news that China was not reviewing its investments in the European market hit investors, according to reports by CNNMoney.com.

Oil gained $3.04, or about 4.25 percent, to close out the day at $74.55 a barrel Thursday, according to the publication. This follows a 4 percent boost Wednesday.

China's State Administration of Foreign Exchange rejected claims that it would consider withdrawing investments in the European market, easing investors' worries about Europe's debt crisis.

In addition, the value of the dollar fell against the euro and British pound, making oil more of a bargain for foreign investors, CNNMoney.com reports.

Oil traders expect demand to pick up soon, especially for gasoline, as Memorial Day weekend is said to kick off the peak summer driving season, the publication said.

In the Energy Information Administration's International Energy Outlook 2010, released this week, the EIA said it expects oil prices to continue to increase long term. U.S. oil prices are expected to rise to $108 per barrel by 2020 and $133 per barrel by 2035.

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