OIL prices rose above US$108 per barrel as optimism grows about a strengthening global economy.

A private survey of the US homebuilding industry yesterday found that companies are increasingly hopeful that home sales will rise in coming months. International Monetary Fund Managing Director Christine Lagarde also said over the weekend that the global economy has "stepped back from the brink."

A pipeline company also is getting closer to opening a new transportation route to the Gulf Coast, relieving a glut of oil in the Midwest that has depressed the price of US crude compared with international varieties.

Benchmark US crude added US$1.03 to end the day at US$108.09 per barrel on the New York Mercantile Exchange. The price has increased by nearly US$3 per barrel in the last two trading days.

Brent crude, which prices oil imported by US refineries, fell by 10 cents to finish at US$125.71 per barrel in London.

In other energy trading, natural gas rose by 2.5 cents to finish at US$2.351 per 1,000 cubic feet. Heating oil fell by 2.09 cents to end at US$3.261 per gallon and gasoline futures added 1.11 cents to US$3.368 per gallon.

Source:shanghaidaily