Oil prices trading above $80 on higher 2010 forecasts

Light oil prices are trading above the $80 mark for a second session after Iran’s OPEC governor forecasts that global consumption may climb by as much as 1.4 million barrels a day in the second half of 2010. Oil prices pared earlier gains as the US dollar traded little changed after posting its sixth straight weekly increase against the euro, the longest streak since 2000.

US Light crude oil futures for March delivery rose around one percent, to $80.51 a barrel in electronic trading on the NYMEX, while in London, Brent crude oil futures for April delivery also rose one percent, to $78.94 a barrel on the ICE Futures Exchange, and was at $78.63 at 1:06 p.m (Singapore time).

“That growth story suggests that oil prices will continue to firm as the global economy recovers,” said Toby Hassall, research analyst with CWA Global Markets Pty in Sydney. “But that firming US dollar, if it does continue, that will keep prices fairly well in check.”

Tags:  2010, forecasts, Iran, light oil prices, oil prices, OPEC, trading