BS: Oil hits 7-week high on weak dollar, French strike
* The dollar hits 8-month low vs basket of currencies
Oil rose to a seven-week high above $78 a barrel on Thursday, supported by a weak dollar and oil port strikes in France.
On the last day of the third quarter, US crude oil futures reversed earlier losses and rose as high as $78.79 a barrel, the most expensive price since mid-August. By 13:37 SA time, it rose 84 cents to $78.70.
ICE Brent crude futures rose $1.04 to $81.81 a barrel.
Petromatrix analyst Olivier Jakob said the oil market might experience heightened volatility on the last day of the quarter, and attributed the gain in oil prices to the weak dollar, which fell to an eight-month low against a basket of currencies.
"The weak dollar supports," Jakob said. "That is still a driver and should be a driver today, also for the end of the month."
A weaker dollar increases the purchasing power of non-US dollar currency holders.
US crude oil futures are on track to close September up 8 percent, the biggest monthly percentage rise since February, and they are set to post a gain of less than 1 percent in the third quarter.
North Sea ICE Brent crude futures, in contrast, are likely to close the third quarter with gains of nearly 5 percent.
The Reuters-Jefferies CRB index hit 8-½ month highs for a second straight session on Wednesday and was poised to end the third quarter up 10 percent.
IRELAND
A credit rating downgrade for Spain and a larger than expected bailout of Irish banks had a limited impact on the oil price.
Mike Wittner, Societe Generale's Global Head of Oil Market Research, said the recent strength of ICE gas oil futures have been leading the oil complex higher.
ICE gas oil, European benchmark for diesel and gas oil for heating, was trading 3 percent higher by 13:24 SA time.
Brokers said support came from a French rolling port strike at the country's strategic Fos-Lavera oil hub near Marseille, which entered its fourth day on Thursday.
They are blocking a total of 24 oil tankers, the port authority said.
The French oil industry body on Wednesday said the strike "seriously threatened" operations at seven refineries in France and Switzerland.
Later in the day, the focus of global markets will shift to weekly jobs data in the United States due out at 14:30 SA time.
Jobless rates in the US, the world's top consumer, have remained relatively high, darkening the outlook for economic recovery and oil demand. - Reuters
