Oil touches $80 on US economy, demand optimism
Oil prices touched $80 a barrel today in Asia on optimism a gradual US economic recovery in 2010 will boost demand for crude.business Updated: Jan 04, 2010 15:52 IST
Oil prices touched $80 a barrel today in Asia on optimism a gradual US economic recovery in 2010 will boost demand for crude.
Benchmark crude for February delivery was up 63 cents at $79.99 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange after briefly changing hands at $80. The contract added 8 cents to settle at $79.36 on Thursday. Trading was closed Friday for the New Year holiday.
Oil has jumped from $69 a barrel last month on signs the US economy may be improving. The unemployment rate fell to 10 per cent in November from 10.2 per cent in October, and the government is scheduled to announced December's results later this week.
"Most people expect the economy to get better this year, and demand should follow," said Victor Shum, an analyst with consultancy Purvin & Gertz in Singapore. "But traders so far lack the conviction to trade oil above $80 simply because of there haven't been clear indications of growing demand yet."
Colder weather has also lifted crude prices recently by boosting demand for heating oil, Shum said.
Oil prices rose 78 per cent last year.
In other Nymex trading in February contracts, heating oil rose 2.52 cents to $2.14 a gallon and gasoline gained 2.11 cents to $2.07 a gallon.