Santa Claus bearing gift in Jerusalem. The unseen hand of a ‘Santa Claus’ appears to be at work in the global oil market making it record modest gains

Global oil prices rebounded slightly today catching the mood around the world of Christmas celebration and a benevolent Santa Claus doling out gifts.

London’s Brent crude for February delivery advanced 76 cents to $62.14 per barrel in late morning deals, and US benchmark West Texas Intermediate (WTI) for February climbed 53 cents to $57.66 a barrel.

The gains extended a rebound on Friday, wiping out losses earlier last week that saw prices hit fresh five-year lows on the back of ample supplies and mounting demand worries.

Oil has however shed about half its value since June, and a decision in November by the Organization of Petroleum Exporting Countries (OPEC) to maintain output levels despite falling prices has weighed heavily on the market.

“Brent crude is up … boosting energy shares across the FTSE,” added ETX Capital analyst Daniel Sugarman.

Analysts are predicting the sector has bottomed out after plunging by around 50 percent since June.

The modest gains in the oil sector also infected Europe’s main stock markets, as they rose strongly.

In late morning deals in the British capital, London’s FTSE 100 index of leading shares jumped 1.02 percent to 6,611.96 points compared with Friday’s close.

Frankfurt’s DAX 30 won 0.67 percent to 9,852.58 points and in Paris the CAC 40 leapt 1.04 percent to 4,285.94.

The euro edged up to $1.2260 after sliding as low as $1.2220 in earlier Asian deals, matching Friday’s two-year trough that was struck as the Federal Reserve signalled it may rise US interest rates in the middle of 2015.

“As the markets begin to wind down for Christmas, the Santa rally was still being felt … with a quiet economic day ahead,” said Spreadex trader Connor Campbell.

“After spending the last six weeks as the Scrooge of the economic world, oil has undergone a slight rejuvenation; in this current climate, any price above $60 per barrel for Brent crude oil is a signifier of hope for the markets.”

“Tullow Oil, always sensitive to oil fluctuations, is currently up, as are both BP and Royal Dutch Shell.”

In London, Tullow Oil stock added 1.46 percent to 430.40 pence, while BP gained 1.39 percent to 418.72 pence and Shell’s ‘B’ share price added 2.17 percent to 2,270.79 pence.

French oil and gas giant Total was the biggest winner on the CAC index in Paris. Shares were 2.57 percent higher at 43.96 euros.

Rising oil prices lift the energy sector because they boost company profits.