Oil prices surged for a fifth day today, with US crude reaching a 2009 high above $75 a barrel. Prices were boosted by a weak US dollar and optimism about a global economic rebound that will lead to higher energy demand.
The weak dollar, which fell to its lowest in more than a year against a basket of other currencies, also boosted gold, which hit a record. Dollar weakness makes oil more affordable for holders of other currencies.
This evening, US crude had jumped 82 cents to $74.97 a barrel, after earlier climbing to $75.40, the highest this year. Brent crude rose 48 cents to $73.88.
Oil has more than doubled from below $33 in December driven in part by hopes of economic recovery, a rally that some in the industry argued had run ahead of weak oil demand, high inventories and abundant supply.
Asian and European data this morning supported a more optimistic view of the economy. Chinese trade figures provided fresh evidence of recovery in the world's second-largest oil user, while euro zone industrial output accelerated in August from July.
Producer group OPEC on Tuesday became the latest forecaster to bump up global oil demand estimates.
Cold weather in the US has also supported prices. Heating demand will be higher than normal this week, the National Weather Service said on Monday.
