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Oil prices rise above $75

14 October, 09
Oil prices have risen above $75 (£46.88) per barrel for the first time this year thanks to growing optimism and the weak dollar, an expert has said.

According to Mark Pervan, a commodity strategist at ANZ Bank in Melbourne, there is "a lot of positive sentiment" at the moment, reports BBC News.

However, he questioned the sustainability of the price rally, saying that if it is dependant on the weakness of the dollar, it could rapidly be reversed.

Petromatrix analyst Olivier Jakob voiced similar concerns, commenting: "Reversals can be sharp when and if the dollar stops to fall off the cliff."

The current weakness of the dollar boosted oil because it makes it cheaper to purchase by those using other currencies.

While US light sweet crude peaked at $75.15 per barrel, it soon dropped below the $75 threshold to $74.86.

Earlier this year, the Saudi Arabian minister of petroleum and mineral resources said the cost of oil in 2012 could surpass the 2008 peak, CBC News reported.ADNFCR-2675-ID-19408860-ADNFCR

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Oil prices rise above $75