US crude oil futures end Friday trading at $78.53, new year high

US crude oil futures extended gains on Friday and the price ended trading closing at the highest level in a year, lifted by a late rally in gasoline futures and higher prices for heating oil.

On the NYMEX, November crude oil settled trade up 95 cents, or 1.22 percent, at $78.53 a barrel, the highest close since Oct. 14, 2008′s $78.63. US oil prices traded from $76.82 to $78.67, the highest intraday since $79.17 was hit on Oct. 15, 2008. For the week, the contract gained $6.76, or 9.42 percent.

Friday’s gains appeared to be a follow through of Thursday’s buying that was sparked by government data showing surprise drawdowns in gasoline and distillate stocks, which include heating oil and diesel.

Earlier, crude oil futures were down as a stronger dollar kept oil investors cautious and a report that consumer sentiment had soured this month revived demand worries.

“Yesterday, after data showed refinery runs dropped, and with the backdrop of a weak dollar, crude broke out of the range it had been stuck in and now, technically, it has free hand to move up to $80,” said Phil Flynn, analyst at PFGBest Research in Chicago.

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