Markets

Oil keeps rising in Europe, breaks $78

LONDON (Commodity Online) : Global oil prices extended gains in European trade Thursday as the dollar remains weak while trends supporting the prices remain intact.

Light sweet crude for November delivery was seen trading at $78.30 a barrel at 12 noon London time while Brent crude was at $80.78 a barrel on the ICE Futures Exchange.

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The greenback remains weak in currency markets which are contributing to higher oil prices. The US Dollar Index which tracks the dollar unit against a basket of six currencies declined 0.3% to 78.779 on the expectations that the US Federal Reserve would resort to further easing.

The Dollar Index has lost more than five percent this month and is down nearly nine percent for the third quarter of 2010.

Analysts said positive trends; emanated from Wednesday's US Government data indicated that crude stocks fell remained active and driving prices high and a weaker dollar adding to strong gains.

US Energy Department on Wednesday said commercial crude inventories decreased by 500,000 barrels to 357.9 million barrels.

Brent oil's peak price for this year so far is $87 a barrel, reached at the end of April 2010.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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