Oil price hits two-year high points

November 06, 2010 | 09:24

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Oil prices hit two-year high points on Friday, dragged higher by a weak dollar, analysts said.

Ahead of positive US jobs data, New York crude struck $87.22 a barrel -- the highest point since October 2008. In London, Brent crude oil reached a six-month high of $88.80.

Following the data, New York's main contract, light sweet crude for delivery in December, stood at $86.71 -- up 22 cents compared with Thursday's close.

Brent North Sea crude for December was at $88.20, a rise of 20 cents.

Oil was rallying "thanks to increased investor risk appetite and the weaker US dollar," the Commonwealth Bank of Australia said in a report.

"The US Federal Reserve's announcement... that it will purchase $600 billion of government bonds and roll over another $300 billion boosted commodity market sentiment and supported prices across the board," it added.

The dollar tumbled on Thursday after the Fed announcement but recovered on Friday after official data showed the United States created a bigger-than-expected 151,000 jobs in October.

The unemployment rate was unchanged at 9.6 per cent for the third consecutive month. The jobless rate matched expectations, while the number of new jobs was more than double the 60,000 forecast by most analysts.

AFP

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