Corresponding to gains in US stock prices and a slide in the dollar, the New York oil prices have shown an increase in the past three weeks - with 15 cents rise in the crude oil for September delivery, which traded at $69.60 per barrel in after-hours electronic trading on the New York Mercantile Exchange.

In Asia, oil prices leaped above $70 per barrel on Monday, with the benchmark crude for September delivery moving up 73 cents to $70.18 per barrel by midday Singapore time at the electronics exchange.

The underlying reason for the rise in crude oil price, trading near a one-month high, apparently stems from the widespread assumption that with the global economy showing explicit signs of recovery, the demand for energy and fuel will undergo a definite increase.

With reference to the rise in the oil prices, Victor Shum - energy analyst with Singapore's Purvin & Gertz - said: "Optimism for economic recovery is fighting the weak fundamentals, and right now the optimism is holding the upper hand." However, Shum also added that the somewhat drab consumer sentiment in the US would likely weigh on demand, thereby sending prices back into the $60-range.

Meanwhile, Iran's OPEC governor, Mohammad Ali Khatibi, told the Shana news agency that "optimistic'' signs in the oil market may actually help raise the prices to $80 per barrel by 20090-end!