1 Aug 2009

Oil up nearly 4% in price

9:13 am on 1 August 2009

Oil rose in price by 3.75% on Friday after data showed the US economy shrank less than expected in the second quarter.

US light crude traded up $US2.51 to settle at $US69.45 per barrel. London Brent crude gained $US1.59 cents to end at $US71.70 per barrel.

Gross domestic product in the United States fell at an annual rate of 1%.

With the contraction in the second quarter, US GDP has fallen for four consecutive quarters for the first time since government records started in 1947.

Crude prices were below $US33 per barrel in December after reaching record highs $US147.27 per barrel on 11 July last year, prompting the Organization of the Petroleum Exporting Countries to cut supplies by 4.2 million barrels per day since September.