Speculation suddenly drives oil higher

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Bill Radke: Oil prices are at a high for the year — above $71 a barrel in Europe this morning on hopes of economic recovery. From London, Stephen Beard reports.

Stephen Beard: Some sales statistics from the East have fueled the latest rise in the price of crude. New car sales in China jumped by 34 percent last month. That’s reinforced a novel idea that Chinese consumers may help to power global economic revival.

The market is also taking heart from slower rates of decline in the U.S. and Europe. But analysts are stressing that traders are looking ahead. We are still not seeing an increase in actual demand for physical barrels of oil.

Nick Macgregor is with brokers Redmayne Bentley:

Nick Macgregor: Investors effectively are really taking a bet on economic recovery. And they see oil as one of the major beneficiaries of any economic recovery as and when it comes.

Some analysts say that, driven by this speculative momentum, the price of oil could hit $80 a barrel within a week.

In London, this is Stephen Beard for Marketplace.