* Dollar falls on speculation of a speedy bailout for
Greece
* Talks between Total and French strikers collapse
* Russia "very alarmed" at Iranian nuclear stance (Updates
prices, adds China Jan refinery runs)
By Fayen Wong
PERTH, Feb 22 (Reuters) - Oil prices rose to a six-week
high above $80 a barrel on Monday, extending the previous
session's gains, as speculation over a quick bailout for
debt-laden Greece helped pushed the U.S. dollar lower.
Concerns about an extended refinery strike in France and
escalating tensions over Iran's nuclear program also lent
support to oil prices.
U.S. crude for March delivery <CLc1> rose 42 cents to
$80.23 a barrel by 0737 GMT, after having struck $80.51 -- the
highest since Jan 13. London Brent crude <LCOc1> rose 48 cents
to $78.67 a barrel.
"The weak dollar is the biggest driver for crude prices
this morning and hopes of a financial rescue for Greece are
propping up sentiments," said Clarence Chu, a trader with
Hudson Capital Energy in Singapore.
The U.S. dollar index <.DXY> fell 0.18 percent against a
basket of currencies on Monday, as investors reassessed chances
of an earlier-than-expected interest rate hike by the Federal
Reserve while the euro was lifted by speculation of a quick
bailout for Greece. []
German weekly Der Spiegel reported on Saturday that
Germany's finance ministry had prepared plans in which
countries using the single currency would provide aid worth
between 20 billion and 25 billion euros for debt-laden Greece.
The ministry refused to comment on the report. []
Hopes of a swift bailout for Greece also helped push Asian
stocks higher and spurred gold and grains to rally.
[][]
Concern over Athens' ability to repay its debt mountain has
shaken confidence in the euro and stirred fears that it may
hinder global growth. Some analysts have said that a plan to
rescue Greece would help allay sovereign debt concerns in
Europe.
Adding to bullish sentiments was a report by the China
Petroleum and Chemical Industry Association (CPCIA) that said
China processed 30.14 million tonnes of crude in January, up 29
percent from a year earlier. []
Separately, an extended strike at Total's six oil
refineries in France and growing hostility between Iran and the
West also aided bullish sentiment for crude.
Talks between Total <TOTF.PA> and workers protesting the
possible closure of the company's Dunkirk refinery in northern
France collapsed on Sunday, the CGT union said, calling for a
strike to spread to all French refineries. []
An extended strike would lift Europe's gasoline prices and
also push up prices across the energy complex, market
participants said.
Russia said on Friday it was "very alarmed" by Iran's
failure to cooperate with the IAEA, after the U.N. nuclear
agency said it feared Tehran might be working to develop a
nuclear missile. []
Oil prices rose 7.7 percent rise on the week, their largest
single-week percentage gain for front-month crude since
October, thanks to a combination of positive economic data and
growing tensions over sanctions against Iran.
Analysts said Wall Street could keep rallying after
notching its best week this year if Federal Reserve Chairman
Ben Bernanke gives a reassuring assessment of the recovery and
retail earnings show improvement. []
On OPEC rumblings, a senior Iranian oil official said on
Saturday the producer group was unlikely to raise its output
ceiling at its next meeting in March. []
Also on Monday, Goldman Sachs said that benchmark oil
prices will rise to $85-$95 a barrel this year as global
economic growth accelerates, up from the low-$70 to low-$80
range since October last year. []
(Editing by Ed Lane)
