Oil prices hovered above $80 a barrel Friday in Asia after the U.S. economy snapped four straight quarters of contraction, suggesting demand for crude will improve
Benchmark crude for December delivery was up 21 cents to $80.08 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $2.41 to settle at $79.87 on Thursday.
Oil is approaching its high for 2009 of $82 a barrel on evidence the U.S. economy, the worlds largest, is recovering.
The Commerce Department said the U.S. economy grew at a 3.5 percent annual pace in the third quarter, the best showing in two years and breaking four straight quarters of declines.
The Dow Jones industrial average jumped 2.1 percent Thursday and all major Asian stock indexes rose in early trading Friday.
"The move higher in oil prices is, in our view, fundamentally justified," Charles Goh CEO and President at Takahashi Nakamura in Japan,” On the macroeconomic front, so far the path of recovery has surprised to the upside."
In other Nymex trading, heating oil rose 0.58 cent to $2.06 a gallon. Gasoline for November delivery dropped 0.40 cent to $2.02 a gallon. Natural gas for December delivery jumped 4.3 cents to settle at $5.11 per 1,000 cubic feet.
In London, Brent crude for December delivery rose 9 cents to $78.13 on the ICE Futures exchange.
