The dollar's 11 percent slide this year has made oil, metals and other commodities denominated in the U.S. currency cheaper for foreign investors. Royal Dutch Shell Plc reported a fire at an oil-sands crude production plant in Alberta, potentially cutting shipments to U.S. refineries.
``For now the link between oil and the dollar is holding, and there is a certain logic to it,'' said Peter Beutel, president of energy consultant Cameron Hanover Inc. in Connecticut. ``If oil becomes cheaper to foreign buyers, perhaps the only way for Americans to get the oil they crave is by bidding its price up.''
Crude oil for January delivery rose as much as $1.16, or 1.2 percent, to $95.80 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $95.68 at 12:32 p.m. London time.
Yesterday, oil rose 0.9 percent to $94.64 a barrel, its highest close since Nov. 9. The dollar dropped to as low as $1.4766 today versus the euro on speculation a slump in housing will slow the U.S. economy.
Brent crude oil for January settlement rose as much as $1.17, or 1.3 percent, to $93.45 a barrel on the London-based ICE Futures Europe exchange. The contract traded at $93.40 price at 12:32 p.m. local time.