Oil Prices Headed Back Toward $80

New York, NY, Dec. 28, 2009–Crude oil prices held near $78 a barrel Monday in Asia ahead of inventory figures later in the week that could send it through the $80 mark.

Benchmark crude for February delivery was flat at $78.05 at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.

The contract rose $1.38 to settle at $78.05 on Thursday, the first time in more than a month that it closed above $78. Oil markets were closed on Friday for Christmas.

Inventory figures from the Energy Information Administration later this week will determine if oil prices can end the year above $80 a barrel.

The government last week reported a crude stocks drawdown of five million barrels and if inventories continue to decline — suggesting improved demand — it will be a boost to crude prices.

Improved employment figures in the U.S. last week also buoyed sentiment and raised expectations of stronger consumer spending.