Oil breaches $80 in Asia

22 February 2010

Written by Kim Bardsley

Crude oil prices breached $80 (£51) a barrel during the electronic trading session of the New York Mercantile Exchange this morning (February 22nd), driven by Asia-Pacific markets.

The rally came as speculation grew that the European Union is bundling up a bailout package for the Greek economy after much deliberation.

Germany's chancellor Angela Merkel has expressed vociferous opposition such a rescue package, exclaiming that "not a cent" of EU money should be handed to the ailing country.

Meanwhile, concerns about a potential refinery strike in France also raised concerns about supply of heating oil and other fuels as another cold front set in across parts of Europe.

However, Clarence Chu, a trader with Hudson Capital Energy in Singapore, told Reuters, declared: "The weak dollar is the biggest driver for crude prices this morning and hopes of a financial rescue for Greece are propping up sentiments."

A weaker greenback tends to make dollar-priced assets such as crude and heating oil more attractive to foreign traders.

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