Oil rises above $78 a barrel on hopes of demand surge
28 Dec 2009
Oil prices on Monday rose to over $78 a barrel, the highest level for a nearly a month.
In morning trading in London, US crude for February delivery rose 30 cents from Christmas Eve's closing price to $78.35 a barrel. North Sea Brent crude in London rose 40 cents to $76.71 a barrel.
Prices lifted on hopes that figures due to be released later this week by the US Energy Information Administration would show reducing stocks triggering demand and signaling an improvement in the US economy.
According to some traders, a good US stock figure could support a $80 a barrel price.
The US government last week reported a crude stocks drawdown of 5 million barrels and analysts say a continued decline in inventories would boost crude prices.
Oil is now at the upper end of the $70-$80 range, a price favoured by many exporters like Saudi Arabia who say the range is comfortable for producers, consumers and investors.
