Oil prices jumped above $75 a barrel today in Asia for the first time in a year on investor optimism crude demand will improve ahead of the Christmas shopping season.
Benchmark crude for November delivery was up 91 cents to $75.06, the highest since October 2008, by midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract gained 88 cents to settle at $74.15 yesterday.
Oil has traded between $65 and $75 since May as traders have mulled mixed crude supply and demand data.
Some analysts expect an increase in diesel fuel demand from US truckers supplying inventory for the year-end holiday shopping season will trigger a sustained rise above $75.
A weak dollar is also bolstering crude prices. The euro rose to $1.4886, the highest since August 2008, in early Asian trading from $1.4852 the previous day while the dollar slid to 89.00 yen from 89.69.
Burgeoning oil supplies this year have weighed on oil prices. Investors will be looking to the latest U.S. inventory data later today and tomorrow from the American Petroleum Institute and the Energy Information Administration.
In other Nymex trading, heating oil rose 1.53 cents to $1.94 a gallon. Gasoline for November delivery gained 2.36 cents to $1.86 a gallon. Natural gas for November delivery jumped 4.5 cents to $4.63 per 1,000 cubic feet.
In London, Brent crude rose 84 cents to $73.25 on the ICE Futures exchange.
AP