Oil price hits new high for 2009

BBC News
Monday, October 19, 2009

The price of oil has reached a new high for 2009, continuing its recent rise on the back of the weak US dollar and strong US company results.

US crude rose 52 cents to $79.05 a barrel in early trading, before slipping back to $78.78, up 25 cents on Friday’s close.

London Brent also traded higher, up 22 cents at $77.11 a barrel.

Oil prices surged last week, as encouraging US bank results fuelled optimism for the global economy.

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‘Massive surplus’

• A d v e r t i s e m e n t

Analysts said the short-term direction of the oil price would depend on the dollar and the next round of corporate results out this week.

“Oil prices are now trading at very high levels considering the fact that we’re still seeing very high stockpiles in the US,” said David Moore, a commodities analyst at the Commonwealth Bank of Australia.

“Crude may trade sideways today, getting direction from the US dollar and the equities market.”

Full story here.

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