Oil extends rally, rises above $80
Oil prices extended gains made last week to push above 80 dollars a barrel in Asian trade Monday on the back of a weaker dollar and signs of a stronger US economy.
New York's main futures contract, light sweet crude for April delivery, rose 50 cents to 80.16 dollars a barrel.
London's Brent North Sea crude for April was up 47 cents at 78.06 dollars a barrel.
"It's higher due to the fact that the US dollar opened a little bit weaker against the euro," said David Moore, a commodity strategist with the Commonwealth Bank of Australia in Sydney.
Oil is traded in dollars and a weaker US unit makes the commodity cheaper to holders of other currencies, stimulating demand and pushing prices higher.
Moore said however that sentiment could be hit by a report showing China's manufacturing sector posted slower-than-expected growth in February.
China's official purchasing managers index fell to 52.0 in February from 55.8 in January, despite analysts' forecasts of 55.45, as the sector slowed due to factory closures during the Lunar New Year holidays.
A reading of above 50 indicates growth in the world's most populous nation and the second-biggest oil consumer after the United States.
New York crude soared 1.49 dollars Friday to close at 79.66 dollars a barrel, lifted by data showing that the US economy grew by 5.9 percent in the final quarter of 2009, beating estimates of a 5.7 percent expansion.
It followed a 2.2 increase in the gross domestic product in the third quarter, the first economic growth after four consecutive quarters of contraction.
Comments