Oil passes 80 dollars in Asian trade

SINGAPORE: Oil prices hurdled 80 dollars a barrel on the first trading day of the year Monday after Russia cut crude supplies to Belarus, analysts said. New York's main futures contract, light sweet crude for delivery in February, rose 78 cents to 80.14 dollars a barrel in the afternoon. Brent North Sea crude for February delivery gained 74 cents to 78.67 dollars. Crude prices rose on concerns over the implications of Russia's move, which has been effective since New Year's Eve, analysts said. "Oil is up, reacting primarily to... Russia stopping oil supplies to Belarus," said Victor Shum, senior principal of Purvin and Gertz energy consultants in Singapore. "That is the dominant factor... and has added some momentum to oil." Media reports said Russia had stopped supplies to Belarus from December 31, 2009, with ongoing negotiations to restart deliveries hampered by tariff disagreements. The incident is the latest in the energy dispute between the two nations over tariff arrangements. Moscow also severed supplies to Belarus in January 2007 following a similar row.