VIENNA — Oil prices hovered near $72 a barrel Thursday as investor optimism about a global economic recovery pushed crude to fresh highs for the year.

Oil has jumped from below $35 a barrel in March on expectations the worst of a severe U.S. recession was over. Traders are starting to price in a recovery by the end of the year and improving crude demand.

"Investors are expecting a quick turn around," said Ben Westmore, an energy analyst with National Australia Bank in Melbourne.

U.S. crude stocks have fallen for four straight weeks, suggesting demand could be recovering.

The Energy Department said Wednesday that crude inventories fell 1.6 million barrels in the week ended June 5.

Iran and Kuwait, members of the Organization of Petroleum Exporting Countries, said Wednesday the group may raise output if oil prices keep rising. OPEC slashed output 4.2 million barrels a day between September and January in a bid to bolster prices.