Crude oil prices break $80

20/10/2009

Crude oil for November delivery was trading at $80.05 per barrel, the highest level seen since October 14th 2008, on the New York Mercantile this Tuesday (October 20th).

The November contract, which expires today, was $79.80 at 13:58 Singapore time, reports Bloomberg.

Analysts will now focus on the more actively traded December delivery which itself increased its price per barrel by 14 cents to settle at $80.13, the ninth consecutive day that prices have risen.

Mike Sander, an investment adviser for Sander Capital in Seattle, said: "A robust economic outlook on the back of a weak dollar is helping to boost the stock market and, in turn, both factors are supporting higher oil prices."

A technical analysis of Fibonacci retracements by Australia & New Zealand Banking Group stated that oil prices may increase to just under $90 a barrel now that a key resistance level of $76.28 a barrel has been broken through.

Earlier in the week Peter Beutel, president of trading advisory firm Cameron Hanover, said $81.73 per barrel should be an achievable target for the commodity.