Oil Rises as Dollar Falls to 15-Month Low, US Demand Rises - Bloomberg

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Nov. 25 (Bloomberg) -- Crude oil rose as the dollar droppedto a 15-month low against the euro and a government reportshowed that U.S. fuel demand gained for a second week.

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Oil increased 2.6 percent after the greenback retreated onthe Federal Reserve’s signal that it will tolerate a weakercurrency. A lower dollar bolsters the appeal of commodities asan alternative investment. Consumption of gasoline and otherfuels climbed 2.8 percent in the past two weeks, an EnergyDepartment report showed. “The primary reason for higher oil prices is the fallingdollar,” said Michael Fitzpatrick , vice president of energywith MF Global in New York. “There were no big surprises intoday’s inventory report.” Crude oil for January delivery rose $1.98 to $78 a barrelat the 2:30 p.m. close of floor trading on the New YorkMercantile Exchange. Prices are up 75 percent this year.

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