23 May 2009

Price of oil rises

7:36 am on 23 May 2009

Oil prices rose on Friday following a big increase in Chinese demand and a weak dollar.

Date issued on Friday showed demand in China rose 3.9% in April from a year earlier. It was the first significant rise since October.

The United States is also marking the Memorial Day holiday weekend, which will keep US markets shut on Monday. Memorial Day marks the start of summer.

US crude futures settled up 62 cents at $US61.67 per barrel, while London Brent rose 85 cents to settle at $US60.78 per barrel.

Oil prices have risen by around $US4 this week, boosted by a spate of refinery problems in the United States and unrest in Nigeria. The US dollar is also weaker.

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Members of the Organization of the Petroleum Exporting Countries are due to meet on Thursday.

OPEC has cut production by 4.2 million barrels per day since last September.