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Oil price hits $79 on world market

19 October 2009 08:40 (UTC +04:00)

Bakuâ€“ APA-Economics. Crude oil traded little changed in New York after rising above $79 a barrel for the first time in a year on speculation demand will increase as the global economy recovers from recession, Bloomberg reported.

Oil climbed as high as $79.05 before a report that may show confidence among home builders in the U.S., the worldâ€™s largest energy user, is at its highest in 17 months, according to economists surveyed by Bloomberg News.

Crude oil for November delivery was at $78.61 a barrel, up 8 cents, in after-hours electronic trading on the New York Mercantile Exchange at 1:24 p.m. Singapore time. Prices earlier rose as much as 52 cents, or 0.7 percent, to $79.05, the highest since Oct. 15, 2008.
The contract, which expires tomorrow, jumped 1.2 percent to $78.53 a barrel on Oct. 16 after a report showed U.S. industrial production climbed more than economists expected last month. The more widely held December contract was at $79.04 a barrel, up 2 cents, at 1:24 p.m.
Last week, oil futures posted their biggest weekly gain in almost two months as U.S. refiners cut operating rates to a six- month low to clear gasoline and distillate stockpiles.
Brent crude oil for December settlement rose as much as 33 cents, or 0.4 percent, to $77.32 a barrel on the London-based ICE Futures Europe exchange, and was at $77.01 at 1:25 p.m. Singapore time.