Brent crude climbed to $69.47 a barrel, its highest since May 2015, boosted by a surprise drop in US production and lower USA crude inventories.
Chevron rose 3.2 percent and Exxon 1.5 percent, helping the S&P energy index gain 2.24 percent and putting it on track for its best percentage gain in more than seven months.
Delta Air Lines surged 4.8 percent after reporting fourth-quarter earnings of 96 cents per share, eight cents above analyst expectations.
"You see this continued rotation into stocks that will accelerate with the economy", said Michael Antonelli, managing director of institutional sales trading at Robert W. Baird in Milwaukee.
Wall Street stocks finished at fresh records Thursday behind gains in industrial and petroleum-linked equities, resuming their upward climb after a one-day pullback.
At 9:34 a.m. ET, the Dow Jones Industrial Average was up 46.19 points, or 0.18 percent, at 25,415.32, the S&P 500 was up 5.29 points, or 0.19 percent, at 2,753.52 and the Nasdaq Composite was up 12.79 points, or 0.18 percent, at 7,166.36.
Nasdaq 100 e-minis were up 5.25 points, or 0.08 percent, on volume of 19,375 contracts. Investors are also keen for the upcoming earnings season, which kicks off Friday with reports from JPMorgan Chase and Wells Fargo. The earnings for S&P 500 companies are predicted on average to increase by 11.8 percent.
Wal-Mart edged up 0.34 percent after the world's largest retailer made a decision to raise entry-level wages for hourly employees to $11 an hour in February as a result of corporate tax cuts.
Xerox shares jumped 10 percent after the Wall Street Journal reported the copier maker was in talks for a deal with Japanese camera maker Fujifilm Holdings that could include a change in control of Xerox.
Data revealed that USA producer prices dropped in December for the first time in nearly 1-1/2 years amid declining costs for services, which could alleviate the expectation that inflation will pick up pace this year. On the Nasdaq, 2,140 issues rose and 771 fell.