Oil rallied to an eight-week peak above $82 a barrel today, near its highest this year, buoyed by a weaker dollar and signs of an economic recovery in top oil consumer the US.
Currency movements could set the direction for prices as demand strength may be unclear during the recovery, analysts said. Some predict the market could soon briefly revisit its 2010 high near $84 a barrel.
US crude was up 68 cents at $82.18 a barrel this morning, after touching $82.41, the highest since $83.95 on January 11. Brent crude was up 70 cents at $80.59 after hitting $80.78, the highest since January 12.
New York crude prices rose over 1% on Friday, helped by a government report that showed the US lost fewer jobs than expected in February. Speculators have also been betting on rising prices.
Oil was further supported today from news that China will build two strategic oil reserve bases - a development likely to underpin demand in the world's second-largest consumer.
With global demand expected to revive in 2010, the Organisation of the Petroleum Exporting Countries looks set to keep its production target unchanged when it meets on March 17, as it has for more than a year.
