A US snowstorm pushed crude oil prices to pre-pandemic levels Tuesday, while global stocks extended rallies on hopes for more US fiscal stimulus.

Silver prices meanwhile sank by 6.7 percent to $27.10 per ounce, having soared the previous day to an eight-year peak on chatroom-driven demand. 

Asian and European stocks fired higher after overnight Wall Street gains, as investors got back in the saddle following last week's global rout to snap up bargain shares.

"The new month continues to be good to equities, which have thrown off their late January despair and staged an impressive bounce from the lows of last week," said IG analyst Chris Beauchamp.

As trading got underway in snowbound New York, the Dow Jones index showed a gain of 1.2 percent.

Oil powers higher

New York oil prices surged on the back of upbeat market sentiment and a snowstorm that socked the northeastern United States.

US benchmark West Texas Intermediate oil soared to $54.94 per barrel, while Brent North Sea crude hit $57.78, a level last reached nearly a year ago.

"Oil prices powered higher... lifted in part by the positive sentiment returning to equity markets, but mostly because of frigid weather sweeping the United States, pushing up the demand for heating," said OANDA analyst Jeffrey Halley.

The rebound marks a stunning turnaround for the oil market, which briefly turned negative early last year, as the deadly Covid-19 outbreak shuttered economies and companies worldwide.

But shares in BP tanked by 3.4 percent Tuesday after the energy group said it plunged into a net loss of $20.3 billion last year due to the pandemic.

On the US stimulus front, President Joe Biden met Monday with Republican lawmakers to discuss their stimulus counter-proposal as he looks for a bipartisan deal.

The $600 billion plan backed by Republicans is worth less than a third of one put forward by the White House, and includes smaller handouts and no provision for state and local governments -- two issues that Democrats are likely to reject.

Elsewhere, fears about the social media-led retail investor battle with Wall Street hedge funds that undermined sentiment last week appeared to be abating.