The price of oil has reached a new high for 2009, continuing its recent rise on china phone the back of the weak US dollar and strong US company results.

US crude settled up $1.08 at $79.61 in New York trading. Meanwhile London Brent crude rose china mobile phones 78 cents to at $77.77 Oil prices surged锛堟惫娑岋紝婢庢箖锛?last week, as encouraging wholesale cell phones US bank results fuelled optimism for the global economy.

Analysts said the short-term direction of china hiphone oil would depend on the dollar and the next round of corporate results.

And there was much caution that the price buy hiphone rises seen in recent days could easily be reversed.

"The spectacular gains were overwhelmingly driven by financials and market optimism rather than tv mobile phone fundamentals," said JBC Energy in Vienna, adding there was "no reason" why prices should not return to between $65 and $75 where they had been for several weeks.

They believe the price of oil is more likely to drop back rather than move higher once fundamental factors re-establish themselves as the main driver of the oil price.

These factors include spare capacity, low profit margins for refiners , a "massive stock surplus" of products such as diesel and heating oil, and lacklustre demand among industrialised nations, JBC argued. The dollar lost more ground mobile watch phones against the euro in early trading, falling to $1.4940, just short of a 14-month low of $1.4967 seen last week.European shares have fallen sharply, hit by disappointing company results and US economic data.

Fallers in the financial sector were led by Prudential, which dropped 9.8% after reporting a 22% decline in UK sales between July and September.

The German software company SAP was hardest hit in Frankfurt, dropping 7.7% after cutting its sales outlook.

London's FTSE 100 dropped 2.32%, the Dax in Frankfurt fell 2.46% and in Paris the CAC 40 was down 2.14%.

On Wall Street, the Dow Jones Industrial Average closed down 1.21% after news that the annual rate of US new home sales had fallen unexpectedly in September.

But trading was nervous ahead of Thursday's key US economic growth figures for the third quarter of the year.

In London, mining shares were also a big drag on the market as lower metals prices reflected doubts about the economic recovery. Xstrata fell 9.4%, Kazakhmys dropped 9.1% and Lonmin lost 8.4%. Earlier in the day in Asia, Tokyo's Nikkei 225 closed down 1.4%, the Hang Seng in Hong Kong fell 1.8% and India's Sensex fell 0.6%.