Oil trades near five week high

Crude oil traded near a five-week high on speculation energy demand
will increase as the global economy recovers from its worst recession
since World War II.

Global consumption may increase by as much
as 1.4 million barrels a day in the second half, Iran’s OPEC governor
Mohammad Ali Khatibi said in an interview on the Shana Web site
yesterday. Prices pared early gains as the dollar traded little changed
after posting its sixth straight weekly increase against the euro, the
longest streak since 2000.

“That growth story suggests that oil
prices will continue to firm as the global economy recovers,” said Toby
Hassall, research analyst with CWA Global Markets Pty in Sydney. “But
that firming dollar, if it does continue, that will keep prices fairly
well in check.”

Crude oil for March delivery rose as much as 30
cents, or 0.4%, to $80.11 a barrel in after-hours electronic trading on
the New York Mercantile Exchange. It was at $80.06 at 7:55 a.m. in
Singapore.

The contract, which expires today, rose 0.9% to
$79.81 on Feb. 19, the highest settlement since Jan. 12. The more
actively traded April contract rose 31 cents to $80.37 today.

Oil
prices climbed 7.7% last week, the biggest gain since October, as US
refiners lifted operating rates for a second week and the Federal
Reserve increased its discount rate for the first time in three years
amid signs of recovery in the nation’s economy.