WTI, Brent back above $90 per barrel

Crude oil prices were higher on Friday, rising once again above the $90 per barrel level in both New York and London.

At just before the close of floor trade on the New York Mercantile Exchange, West Texas Intermediate crude March contracts had added $1.39 to $90.80 per barrel, while Brent crude for March delivery was up $1.90 to $90.97 per barrel on the ICE Futures Europe exchange in London.

Prices were higher as optimism increased that recession can be avoided in the United States after recent efforts to boost the US economy.

Other issues affecting the price of oil included a report that demand in China was 6.4 percent higher in Decmeber and bad weather that closed at least one offshore drillling platform and triggered the evacuation of nonessential personnel from several others near Norway.

Additionally, Iraq said it will increase oil production this year.

According to the country’s oil minister, production increased in the past three months and a similar increase is expected this year.

In December output was at 2.475 million barrels per day in Iraq, up from 1.9 million barrels per day in January 2007.

The Iraqi oil minister blamed recent high oil prices on the actions of speculators, not on any lack of supply.

Nymex February gasoline added 4 cents to $2.32 per gallon and March heating oil was also 4 cents higher to $2.51 per gallon while March natural gas gained 11 cents to $7.89 per million British thermal units.