World oil prices exceed $90 per barrel

The price of oil on both sides of the Atlantic has hit its highest level since the financial crisis: in Europe, Brent crude futures rose to $91.58 per barrel, while in the US, West Texas Intermediate hit $89.35 - the highest levels since October 2008,
BBC reports.

Despite the market rally, prices still remain 40% below their pre-crisis peak. Among the factors driving prices higher are rising demand because of the global economic recovery and cold weather in Europe, as well as the weak US dollar.

Crude oil rose to its highest level in 25 months as the dollar tumbled, boosting the appeal of commodities as an alternative investment, Blooming reports. Oil jumped 1.4 percent as the Dollar Index dropped to its lowest level since November 23 after U.S. employers created fewer jobs than forecast in November.

Brent oil prices close a bullish trading week firm at over $91 per barrel ($5.83 per barrel higher than last week’s close of $85.75) and with uncertainty in stocks and foreign exchange markets, analysts are forecasting that Brent crude could start 2011 close to or over $100, Live Oil Prices reports.

Brent oil prices will trade to $100 a barrel in the first half of 2011 and $120 before the end of 2012, JP Morgan said in their latest oil price forecast yesterday, predicting that OPEC will be very slow to react to higher oil futures.