Oil moves above $80 a barrel

| February 22, 2010 | 0 Comments

The price of US crude oil has moved back above the $80 a barrel mark, while London Brent climbed 58 cents to $78.64, extending last week’s gains.

The rise, which is a six-week high, resulted in the FTSE 100 opening higher today and lifted the euro 0.2% after reports of a rescue for debt-stricken Greece.

Meanwhile, the news also pushed the US dollar lower, and according to Clarence Chu, a trader with Hudson Capital Energy in Singapore: “The weak dollar is the biggest driver of crude prices this morning and hopes of a financial rescue for Greece are propping up sentiments.”

Over the weekend, German magazine Der Spiegel, reported that Germany’s finance ministry devised a scheme that would see countries. that use single currency. providing aid worth between €20 billion and €25 billion (£17.6 billion-£22 billion) for debt-laden Greece.

In the meantime, crude oil also extended its gains after reports of China increasing the volume of oil it processed last month.

Furthermore, China’s oil demand for 2010 is expected to increase by 5% for the 2010 year compared to a 3.7% gain in 2009, which is expected to lift oil prices in the short-term, according to analysts.

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