Oil prices rise to new 2009 high

Oil prices have hit almost $72 a barrel, a new high for the year so far, on hopes of an economic recovery.

US light crude hit a seven-month peak of $71.79 before falling to $71.33. London Brent crude rose to $70.80.

The price of oil has more than doubled this year on hopes the worst of the global recession is over.

"I wouldn't be surprised if we're testing $80 in a week or two," said Gerard Rigby, an analyst with Fuel First Consulting.

Signs of more positive business and consumer confidence, as well as slowing in the rates of economic decline in major economies, have appeared as governments have pumped trillions into bailing out the financial system.

First fall in oil use since 1993

On Tuesday, the US Energy Department's Energy Information Administration predicted that oil prices would average $67 a barrel in the second half of 2009. A month ago, its forecast was $55.

Oil prices have risen sharply from lows of about $32 a barrel in December, but they are still not close to the all-time high of $147 reached in July last year.

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