LONDON (AFP) - World oil prices inched higher on Monday as a weaker dollar outweighed a bleak US economic outlook, analysts said. New York’s main contract, light sweet crude for November delivery, rose 35 cents to 76.84 dollars a barrel.
Brent North Sea crude climbed 19 cents to 79.06 dollars in midday London trade. A fall in the dollar’s value was supporting crude markets, said Ong Yi Ling, an investment analyst for Phillip Capital. “For today, we’re still looking at the effects of a weaker dollar,” she said. “Due to the dollar weakness, commodities such as crude will benefit.” A weakened greenback makes dollar-priced crude more attractive to investors using other currencies.
Losses on the dollar were sparked by the US Federal Reserve’s announcement last week that it was ready to revive stimulus measures if the economy faltered. However, crude gains were tempered by persistent concerns over the US economy, Ong said. “Investors are still looking at the US economy” where the outlook remains bleak, she said. Data released on Friday by the US census bureau showed new home sales remaining at their second lowest rate on record in August as rock-bottom interest rates and low prices failed to spur investment.
