Oil Prices Hover Around $86 Per Barrel

Oil rose above $86 on Friday to near 18-month highs as positive United States economic indicators and rallying equities lifted expectations for sustained energy demand growth in the number one energy consumer.

World stocks and commodities rose after a record 9.1 per cent rise in US retail sales boosted optimism about economic recovery prospects.

Global equities measured by the MSCI All-Country Index rose 0.5 per cent on Friday, snapping a two-day losing streak.

Front-month US crude rose 80 cents to $86.15 a barrel, trading within $1 of the 18-month high of $87.19 touched earlier this week.

ICE Brent stood 90 cents higher at $85.71 after climbing more than $1 to $85.94 earlier in the session.

A dip in the dollar was also supportive for oil. A weaker dollar makes crude oil more affordable for holders of other currencies.

“It’s supported mostly by equity markets and a weaker dollar.

Before this week, oil prices were trading in a broad range between $65-85 a barrel since last August.