Oil prices hit $82.41 extending last week’s gains

Positive economic data has resulted in a rise in US crude oil today to $82.41 extending last week’s gains.

Oil has risen by 18% since early February since investors have become more optimistic that an improvement in the global economy would increase demand for oil.

Meanwhile, Brent North Sea crude for April rose 73 cents to $80.62 in afternoon London trade.

Oil prices rose on the back of better than expected jobs news from the US, as well as the possibility that the Greek debt crisis is easing.

Tetsu Emori, a fund manager at Astmax asset management in Tokyo, said the market was likely to see an upward trend in oil prices in the short term.

Oil prices reached a peak of $147 in July 2008 but dived as low as $40 in January 2009.

However, oil prices have also risen lately due to reports of China increasing the volume of oil it processed in January.

Furthermore, China’s oil demand for 2010 is expected to increase by 5% for the 2010 year compared to a 3.7% gain in 2009, which is expected to lift oil prices in the short-term, according to analysts.

Meanwhile, oil traders have digested the comments of Saudi Arabia’s King Abdullah who, over the weekend, said he would continue its policy of “moderation” in oil, which assisted in limiting the damage of the global financial crisis.