Oil prices fell back this evening after the price of US crude earlier hit $80 a barrel for the first time in a year due to growing optimism about global economic recovery.
US crude reached $80.05 a barrel - the highest point since October 14 2008 - as a weak US currency increased demand for crude oil. It later stood at $78.11, down $1.50 from Monday's closing level. Brent slid $1.26 to $76.51.
The slumping dollar boosted crude prices because a weak US currency makes dollar-priced crude cheaper for holders of stronger foreign currencies, increasing demand for oil. The euro went as high as $1.4994 before losing ground to below $1.49 after disappointing US housing market data.
OPEC is meanwhile ready to invest funds to aid the production of oil amid a recovery in energy demand and rising prices for crude, the cartel's chief Abdalla Salem El-Badri said.
'"We, OPEC, are ready to invest,' the secretary-general of the Organisation of Petroleum Exporting Countries told Oil & Money 2009, a London conference for the world's energy industry.
Most of OPEC's 12 member countries are satisfied with current oil prices. El-Badri argued that $60-$70 oil would not be enough to allow adequate investment levels by OPEC, which pumps 40% of the world's oil.
