Oil prices rise above 89 dollars

December 02, 2010 | 21:24

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Crude oil prices rose on Thursday, supported by positive economic news from key regions and a cold snap in Europe, analysts said.

Brent North Sea crude for delivery in January climbed 27 cents to 89.14 dollars a barrel in London trade.

New York's main contract, light sweet crude for January, edged up six cents to 86.81 dollars a barrel.

"Pricing in the near term is likely to stay strong," said Victor Shum, an analyst at Purvin and Gertz energy consultants.

"What has supported the rally in oil futures is really good economic news from across the globe," he added.

Oil prices had already risen sharply on Wednesday, boosted by strong economic data from the world's two largest economies, the United States and China.

Surveys in China showed a strong pick-up in manufacturing activity and in the United States, a much stronger-than-expected rise in private sector employment lifted confidence the US economic recovery was well under way.

Venezuelan Oil and Energy Minister Rafael Ramirez called on Thursday for higher oil prices, saying the world economy could support a "fair" rate of 100 dollars a barrel.

"We believe the fair price for oil has to be 100 dollars (a barrel) and we think the world economy will support this price," Ramirez told reporters in Doha where he is due to attend a meeting for gas suppliers.

Oil prices have stabilised at around 80 dollars a barrel for most of 2010, after crashing from a peak of 147 dollars in mid-2008 to just above 30 dollars in early 2009.

AFP

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