Oil higher in Asian trade amid dollar weakness

Oil rose further in Asian trade on Wednesday, extending overnight gains after the dollar fell to a new 2009 low against the euro, analysts said.

Renewed hopes of better energy demand as the global economic recovery continues and the arrival of cold weather in the United States, the world's largest oil user, also lent support to crude prices, they said.

New York's main contract, light sweet crude for November delivery rose 70 cents to USD 74.85 a barrel.

Brent North Sea crude for November delivery advanced 54 cents to USD 72.94 a barrel.

Expectations that the dollar will continue to languish against the euro and other major currencies will boost the crude market, analysts said.

"We expect a further fall of the US currency over the next two weeks," said Dariusz Kowalczyk, chief investment strategist with SJS Markets financial services firm in Hong Kong.

The euro reached USD 1.4876 during intra-day trading Tuesday, its highest level since August 2008, before easing to USD 1.4852 in late US trade.

With little reprieve seen for the dollar, investors have sought to protect themselves against the greenback's fall by buying hard assets such as oil and other commodities.


A struggling greenback tends to boost crude prices particularly because the dollar-denominated commodity becomes cheaper for foreign buyers holding stronger currencies.