NEW YORK ? World oil prices wrapped up a massive 2009 rebound Thursday on a mixed note amid hopes for a global recovery from recession.

Crude oil prices surged 80 percent from a year ago as traders were heartened by mounting evidence that the global economy was on the mend, with the eurozone, Japan and the United States emerging from a fierce recession.

New York's main futures contract, light sweet crude for delivery in February, crept eight cents higher to close at $79.36 a barrel.

London's Brent North Sea crude for February fell 10 cents to settle at $77.93.

The New York contract ended the year 77.94 percent higher, while Brent was not far behind, clocking in a gain of 70.94 percent.

Amid thin trading as many market participants were away from their desks ahead of the New Year holiday Friday, the New York contract managed to reach the pyschological level of $80.00 in intraday trade.

"Momentum seems to run out near $80 as market participants ponder the conundrum of whether or not a sustainable recovery is actually underway," said Mike Fitzpatrick at MF Global.

The oil market ran counter to other markets, overcoming a slightly firmer dollar that makes oil more expensive and slumping Wall Street equities.

The positive bias "shows near-term supply and demand strength," said Ellis Eckland, an independent analyst.

Oil prices found support again from official US data released Wednesday that showed declines in stockpiles of crude oil and distillates, including heating oil, in the past week, suggesting stronger demand in the world's biggest energy-consuming nation.

That report built on the prior week's unexpected and sharp declines in the two categories.

"The inventories number was bullish yesterday. Also the weather?s been cold," Eckland said, explaining the rise in demand for heating oil.

The analyst forecast a typical January surge in oil prices as markets emerge from the worst global economic and financial crisis in decades.

Before the 2008 crisis, "you?d often get a rally in January, because it?s cold and the demand is stronger. The distillates market tightens up," he said.

The current market is "kind of going back to normal, because the market wasn?t tight at all," he added.

The Organization of Petroleum Exporting Countries (OPEC), which produces 40 percent of global crude output, last week held its production quotas unchanged at an Angola meeting, warning of lingering weakness in the world economy.

A steady 10-month climb has brought the New York futures contract not far from its 2009 peak at $81.37.

MF Global's Fitzpatrick said that oil this year had fixed its role as a macroeconomic measurement that formerly was held exclusively by precious metals, currencies and treasuries.

"That role was enhanced earlier in the year as commodities in general became a store of value for investors as confidence in capital markets was shaken in the wake of last year's Lehman Brothers debacle," he said.

The OPEC meeting capped a year of recovery for oil prices, which have more than doubled since the cartel set strict quota cuts in the depths of the economic crisis a year ago.

Last January the cartel agreed cuts of 4.2 million barrels a day, which helped support prices.

The worldwide economic downturn, which was sparked by the global financial crisis that emanated from the collapse of the US housing bubble, had slammed energy demand, driving prices to a 2009 low of $33.98 on February 12.

"So much then for 2009, a year that the oil market spent mainly in a recovery mode," said Barclays Capital analyst Paul Horsnell.

However, prices still remain far below the record highs above $147 a barrel struck in July 2008 on fears of supply disruptions.