Oil price breaks $80 mark in Monday trading in Asia

Oil price breaks through the $80 a barrel mark in trading on Monday in Asia on optimism a US economic recovery in 2010 will boost demand for crude oil.

Benchmark US Light crude oil futures for February delivery was up 63 cents at $79.99 a barrel at midday Singapore time in electronic trading on the NYMEX after briefly changing hands at $80, while in London while Brent crude oil futures are trading around $78 to $79 on the ICE Futures Exchange. Oil trading was closed Friday for the New Year holidays.

Oil prices have jumped from $69 a barrel last month on signs the US economy may be improving. The US unemployment rate fell to 10 percent in November from 10.2 percent in October, and the US government is scheduled to announced December’s results later this week.

“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 simply because of there haven’t been clear indications of growing demand yet.”