Oil prices soared on Monday, owing to weak dollar plus projections of higher demand amid hopes of economic recovery.

November delivery of Light, sweet crude oil jumped 2.1 per cent to settle at $73.27 per barrel, on the New York Mercantile Exchange.

It was the first time crude futures have jumped past $73 per barrel since August 24.

Brent crude on the ICE Futures Exchange soared by 1.9 per cent to $71.36 per barrel.

Speaking on the issue, analyst Tom Bentz, said, “The [oil] market is trading on expectations of a global economic recovery and pricing into that expectations of higher oil demand.”

Weak US dollar also pushed oil prices up as weaker dollar makes crude oil cheaper for the possessors of other currencies.

Crude oil prices were also backed by an International energy Agency report in which it stated an increase in demand at the end of this year and during the next year as the global economy recovered from recession.