6 Dec 2010

Oil price highest in two years

6:32 am on 6 December 2010

The price of oil, in both the UK and Europe, 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.

Among the factors driving prices higher are rising demand because of the global economic recovery, cold weather in Europe, and the weak US dollar, the BBC reports.

Despite the market rally, prices still remain 40% below their pre-crisis peak.

Meanwhile, the price of gold jumped almost 2% on Friday, rising above $US1400 an ounce, as the dollar tumbled after disappointing jobs data cast doubt on the strength of the US economic recovery.