Oct. 16--The week-long rally in the oil price continued today as crude jumped above $78 a barrel. Oil rose as much as 59 cents to $78.17 in New York after a shock fall in gasoline supplies in the US.

Until this week, oil had bounced between $65 and $75 since May.

"The transition to a $70 to $80 range is now in full cry," Barclays Capital said in a report. "We expect further transitions upward to occur in line with improvements in the underlying market data."

The weak US dollar has also helped boost oil this week as a cheaper greenback makes crude an attractive safe haven.

The rising oil price threatens to push the price of a litre of petrol and diesel further above £1 a litre this winter. In London, Brent crude for December delivery rose 22 cents to $76.45 on the ICE Futures exchange.

-----

To see more of the Evening Standard, or to subscribe to the newspaper, go to http://www.thisislondon.co.uk.

Copyright (c) 2009, Evening Standard, London

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

A service of YellowBrix, Inc.