NEW YORK (AP) -- Oil prices are soaring on promising economic news out of Europe and the U.S.

Benchmark crude on Tuesday rose $3.47, or 3.7 percent, to $97.52 per barrel in New York. Brent crude rose $3.40, or 3.3 percent, to $107.04 per barrel in London.

Major stock indexes were up more than 2 percent in morning trading.

Prices climbed after Germany reported that business and consumer confidence rose unexpectedly in December. Spain's borrowing costs plummeted in a debt auction as the country promised more austerity measures to resolve its debt problems.

In the U.S. shopping malls said sales jumped last week. And the government reported a surge in apartment construction and building permits in November.

Retail gasoline prices fell by less than a penny to a national average of $3.21 per gallon.