THE price of oil climbed above US$90 per barrel for the first time since May after the government said US oil demand is on the rise.

The Energy Information Administration reported yesterday that average oil demand increased last week in the US for the third week in a row. Oil demand had been down most of the year, when compared with 2011, as manufacturing activity slowed and drivers cut back on travel.

Benchmark US crude rose 37 cents to US$89.59 per barrel in New York. It hit US$90.04 per barrel earlier in the day, the highest price since May 30.

Meanwhile, retail gasoline prices rose 2 cents to a national average of US$3.426 per gallon (3.7 liters).

Source:shanghaidaily.com