As the equity rally continues, commodities continue to benefit as more compenies continue to beat expectations and that is a good sign that energy demand will pick up in the next quarter. Oil prices are reflecting that expectation.
The price of oil breached $80 a barrel in early trading in Asia, a new high for the year, boosted by the weak US dollar and strong US company results.
US light crude then fell back slightly to $79.56. London Brent was unchanged at $77.77 a barrel.
Oil prices are rising as encouraging US company results fuel optimism for the global economic recovery.
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