Oil rises to near $71 in Asia, hitting 2009 high

Oil prices closed in on $71 a barrel Wednesday in Asia, reaching a 2009 high, as investors poured money into the commodity as a hedge against a weakening U.S. dollar and inflation.

Benchmark crude for July delivery was up 70 cents at $70.71 a barrel by midday Singapore time in electronic trading on the New York Mercantile Exchange. On Tuesday, it jumped $1.92 to close at $70.01.
Oil has jumped more than 100 percent in three months as traders have cheered news showing the worst of a severe U.S. recession is likely over, and have brushed off data -- such as a 9.4 percent unemployment rate in May -- that suggest crude demand will remain weak.
"I wouldn't be surprised if we're testing $80 in a week or two," said Gerard Rigby, energy analyst with Fuel First Consulting in Sydney. "The momentum right now is too strong."

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