US Light oil price is trading back above $81 a barrel

US Light oil price topped $81 a barrel in trading on Monday on optimism that a gradual economic recovery in the US in 2010 will increase demand for crude oil. In trading in New York, benchmark crude oil futures for February delivery was up $2 to $81.36 a barrel, trading above $80 for the first time in several weeks.

“Most people expect the economy to get better this year, and demand should follow,” said Victor Shum, an analyst with consultancy Purvin & Gertz in Singapore. “But traders so far lack the conviction to trade oil above $80 for long, simply because of there haven’t been clear indications of growing demand yet.”

Other analysts underlined that there was still a way to go before thirst for oil returned to earlier levels. “The bottom line is that demand is improving, but is still a far cry from what it once was,” said a report from Cameron Hanover, a consulting firm.

Uncertainties about demand, high stockpiles of crude and refined products and trading positions defined by the technical analysis of prices were also seen affecting the market.

“We do not think that the fundamental picture and the price structure will allow for the current crude oil prices to be sustained in 2010,” Olivier Jakob, of Switzerland’s Petromatrix, said.

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