Oil price rises above $81 level

The price of oil has risen above $81 a barrel, a new high for the
year, as hopes rise that the global economic recovery is picking up
pace. US light crude rose to $81.43 a barrel, before slipping back
to $80.50. London Brent also climbed before dropping back to $78.82
a barrel. The price was boosted by figures released on Thursday
showing China's economic growth had accelerated. But a strengthening
dollar caused the price to fall in afternoon trading. The price of oil
has risen in recent weeks, largely on the back of strong company
results in the US which have fuelled optimism for the global economic
recovery. But there are concerns that sentiment, rather than
fundamentals, is driving the oil price, and that once these
fundamentals re- establish themselves, the price may fall. These
include spare capacity, stock piles of oil and weak demand among
industrialised nations.