As I have said a number of times in the last few months Oil will see $100 a barrel this year and $200 a barrel next year, todays trading and news from Opec stating OPEC will lift supply to protect the global economic recovery at a meeting in December if oil prices rise to $US100, confirms this is the likely target for Oil in 2009.
LONDON - Oil rose above $US81 a barrel, rebounding from an earlier decline, as a falling US dollar and gains in US equities outweighed a weak oil supply and demand picture.
The US dollar weakened against a basket of currencies, making oil cheaper for holders of other currencies. US stocks opened higher after a sell-off in the previous session.
"The financial market environment is still supportive for oil prices despite still weak fundamental data," analyst at Commerzbank Carsten Fritsch said.
US crude for December delivery was up 92 cents to $US81.42 by 0051 AEDT, having earlier fallen as low as $US79.57.
It reached a 2009 high of $US82.00 on October 21.
Brent crude rose $US1.00 to $US79.92.
The dollar fell to a 14-month low against the euro.
A Chinese report saying Beijing should increase its holdings of euros and yen in its foreign reserves knocked the US currency.
China was again the bright spot for the global economic outlook, following comments by Vice Premier Li Keqiang that the country's economic recovery has consolidated after having performed better than expected.
Its strong economic growth was reflected in a 12.5 per cent year on year jump in implied oil demand, the sixth rise in a row and first double-digit growth since August 2006.
The earnings season continues this week, offering more clues about the strength of economic recovery.
Verizon Communications Inc reported third-quarter revenue that rose from a year earlier but profit that fell as costs increased.
Oil rallied despite potentially bearish supply developments.
Nigeria's main militant group reinstated a ceasefire on Sunday in the oil-producing Niger Delta to allow for peace talks with the government.
Attacks on oil installations by the Movement for the Emancipation of the Niger Delta (MEND) have cut output in the major oil exporter for the last three years.
The oil price rally has caused some concern within the Organization of the Petroleum Exporting Countries, prompting some officials to raise the prospect of increasing its oil output.
OPEC will lift supply to protect the global economic recovery at a meeting in December if oil prices rise to $US100, Jose Botelho de Vasconcelos, the group's president, said on Sunday.
Disclosure Long Oil