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Oil hovers above $80

22 February 2010 08:42 (UTC +04:00)

Baku â€“ APA-Economics. Oil prices rose to a six-week high above $80 a barrel on Monday, extending the previous session’s gains, as speculation over a quick bailout for debt-laden Greece helped pushed the U.S. dollar lower, Reuters reported.

Concerns about an extended refinery strike in France and escalating tensions over Iran’s nuclear program also lent support to oil prices.

U.S. crude for March delivery rose 42 cents to $80.23 a barrel by 0452 GMT, after having struck $80.47 -- the highest since Jan 13. London Brent crude rose 58 cents to $78.64 a barrel.

Concern over Athens’ ability to repay its debt mountain has shaken confidence in the euro and stirred fears that it may hinder global growth. Some analysts have said that a plan to rescue Greece would help allay sovereign debt concerns in Europe.

Separately, an extended strike at Total’s six oil refineries in France and growing hostility between Iran and the West also aided bullish sentiment for crude.

Talks between Total and workers protesting the possible closure of the company’s Dunkirk refinery in northern France collapsed on Sunday, the CGT union said, calling for a strike to spread to all French refineries.

Oil prices rose 7.7 percent rise on the week, their largest single-week percentage gain for front-month crude since October, thanks to a combination of positive economic data and growing tensions over sanctions against Iran.

Analysts said Wall Street could keep rallying after notching its best week this year if Federal Reserve Chairman Ben Bernanke gives a reassuring assessment of the recovery and retail earnings show improvement.

On OPEC rumblings, a senior Iranian oil official said on Saturday the producer group was unlikely to raise its output ceiling at its next meeting in March.