Oil Near $80 On Economic Optimism

Oil prices extended gains Friday as optimism prevailed amid data released during the week indicating a speedy economic recovery in the US, the top consumer of oil. Meanwhile, the greenback touched a nine-month high versus the euro.

Crude oil for delivery in March settled $0.75 higher at $79.81 per barrel in the New York Mercantile Exchange. On a weekly basis the price gained over 7%, and is currently at its highest level since mid-January.

The US Labor Department reported Friday its Consumer Price Index rose by a lower than forecast 0.2% in January. The core CPI, which excludes the prices of food and energy, dropped for the first time since 1982. The tame inflation figures affirmed the view that the Federal Reserve may continue to keep interest rates unchanged near zero for an extended period.