LONDON (AFP) - Oil soared above 85 dollars on Thursday, nearing October 2008 peaks in thin pre-holiday trade, driven by manufacturing data which underlined the global economic recovery, traders said. New Yorks main contract, light sweet crude for delivery in May, jumped as high as 85.10 dollars per barrel, levels last seen in early October 2008. It later stood at 84.88 dollars, up 1.12 dollars from Wednesdays close. Brent North Sea crude for May also hit a similar high at 84.04 dollars, before pulling back slightly to 83.96 dollars, up 1.26 dollars. Decent data around the globe have offered a positive backdrop, said analysts at Sucden Financial Research in a note to clients. Funds (which) have been reported as getting out of the oil market recently have also been reported as re-entering the oil market today, at the start of a new quarter. In the United States, the worlds largest energy market, the manufacturing sector grew for an eighth consecutive month in March, and at a faster pace than expected. The Institute for Supply Management said its purchasing managers index rose to 59.6 percent in March from 56.5 percent in February, chalking up the fastest rate since July 2004. Manufacturing in the eurozone defied forecasts in March, hitting a 40-month high as the Markit research groups PMI rose 2.4 points from February to 56.6 points in March the sixth consecutive month above the boom-or-bust 50-point line. There was also positive news from the manufacturing sector in China, the worlds second biggest oil consuming nation, while Japans Tankan survey indicated a steady improvement of business confidence. Oil had also rallied sharply on Wednesday, driven by a weaker dollar, before paring gains on a report which showed a larger-than-expected build in US crude stocks. US crude inventories rose by 2.9 million barrels in the week ending March 26 beating market expectations for a gain of 2.1 million barrels. Analysts said this weeks gains were also buoyed by an International Energy Forum meeting that pledged greater cooperation and more transparency in tackling oil price volatility, seen as damaging to economic recovery. With regard to energy market volatility, energy markets should be as transparent as possible, the International Energy Forum said at the end of a two-day meeting in Mexico. It also agreed to strengthen dialogue between leading oil producers, such as Saudi Arabia and Russia, and key consumers including the United States and China, in a bid to eliminate the The declaration signed by 66 countries proposed creating an IEF Charter aimed at improving the forums own transparency and dialogue and ultimately its influence on the world stage.