With Brent’s front-month November contract set to expire on Friday, the premium to US crude strengthened and intraday reached a record $27.89 a barrel. Both crude contracts were on pace to post second consecutive weekly gains.

US retail sales grew at their fastest pace in seven months in September, up 1.1 percent on strong auto purchases.

The rise was stronger than economist expectations and sales for August and July were revised higher as well.

“Equities were up on the retail numbers and good Google results and oil is very responsive to those numbers and we’re seeing a reallocation of funds, with some shorts possibly moving back into long positions,” said Richard Ilczyszyn senior market strategist at MF Global in Chicago.

But despite the September buying splurge, consumer sentiment slipped in early October more than expected, sending the gauge to the lowest level in more than 30 years.

France and Germany reaffirmed their commitment to a recent deal between their two leaders to combat the euro zone crisis, lending support to oil prices earlier.

Brent crude for November rose $3.58 to $114.69 a barrel by 1:26 p.m. EDT (1726 GMT), having pushed above both the 100- and 200-day moving averages for front-month.

Brent December crude rose $3.26 to $112.46, having hit a $112.65 intraday peak.

US November crude was up $2.78 at $87.01 a barrel, having reached $87.28.

US heating oil also posted strong gains as the northern hemisphere heating season approaches.

Broker and industry sources have pointed to Shell’s recent Singapore refinery fire, Europe’s low stockpiles and US

Northeast refineries idled or undergoing maintenance as factors responsible for strong prices.

US stocks rose as the supportive retail sales eased fears of another recession and optimism was at least temporarily revived that Europe was making progress on a solution to its debt crisis.

The euro zone debt crisis will dominate a summit of G20 finance chiefs and central bank heads in Paris, with a

downgrade of Spain’s credit rating highlighting the risks to an economy much larger than that of Greece.

A dip in Chinese inflation to 6.1 percent in September also boosted oil prices, because it raised the possibility the

central bank may put monetary tightening on hold, which could boost the economy and fuel demand.

Supply disruptions in the North Sea and in OPEC-member Nigeria as well as still irregular exports from Libya have

reduced global output of some of the best-quality light, sweet crude oil, helping support Brent crude prices.

Gunfights broke out in the Libyan capital Tripoli on Friday between dozens of supporters of deposed leader Muammar Qaddafi and forces of the new government.

OPEC is set to meet to discuss policy on Dec. 14 in Vienna.