FOX: Oil hits 7-wk high on weak dollar, French strike
By Zaida Espana and Ikuko Kurahone
LONDON, Sept 30 (Reuters) - Oil rose to a seven-week highabove $78 a barrel on Thursday, supported by a weak dollar andoil port strikes in France.
On the last day of the third quarter, U.S. crude oil futures reversed earlier losses and rose as high as $78.79 a barrel,the most expensive price since mid-August. By 1137 GMT, it rose84 cents to $78.70.
ICE Brent crude futures rose $1.04 to $81.81 a barrel.
Petromatrix analyst Olivier Jakob said the oil market mightexperience heightened volatility on the last day of the quarter,and attributed the gain in oil prices to the weak dollar, whichfell to an eight-month low against a basket of currencies.
"The weak dollar supports," Jakob said. "That is still adriver and should be a driver today, also for the end of themonth."
A weaker dollar increases the purchasing power of non-U.S.dollar currency holders.
U.S. crude oil futures are on track to close September up 8percent, the biggest monthly percentage rise since February, andthey are set to post a gain of less than 1 percent in the thirdquarter.
North Sea ICE Brent crude futures, in contrast, are likelyto close the third quarter with gains of nearly 5 percent.
The Reuters-Jefferies CRB index hit 8-�� month highs for asecond straight session on Wednesday and was poised to end thethird quarter up 10 percent.
IRELAND
A credit rating downgrade for Spain and a larger thanexpected bailout of Irish banks had a limited impact on the oilprice.
Mike Wittner, Societe Generale's Global Head of Oil MarketResearch, said the recent strength of ICE gas oil futures havebeen leading the oil complex higher.
ICE gas oil, European benchmark for diesel and gas oil forheating, was trading 3 percent higher by 1124 GMT.
Brokers said support came from a French rolling port strikeat 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 portauthority said.
The French oil industry body on Wednesday said the strike"seriously threatened" operations at seven refineries in Franceand Switzerland.
Later in the day, the focus of global markets will shift toweekly jobs data in the United States due out at 1230 GMT.
Jobless rates in the U.S., the world's top consumer, haveremained relatively high, darkening the outlook for economicrecovery and oil demand. (Additional reporting by Florence Tan in Singapore; editing bySue Thomas)
