Oil prices fell to their lowest in five months on Tuesday following initial reports that Hurricane Gustav had spared rigs, refineries and pipelines in the US Gulf of Mexico.
Other factors include an upturn in the dollar, plus falls in oil demand in the United States and China.
Lower crude prices eased inflation worries and boosted European shares to their highest levels in three weeks.
Airlines, including Lufthansa, British Airways and Air France-KLM, all enjoyed substantial gains along with travel operators
Carmakers, banks and retailers all rose, but the lower oil and metals prices put pressure on energy and mining stocks.