Oil rises above $81 on Asian stocks, weaker dollar

[November 18, 2010]  SINGAPORE (AP) -- Oil prices rose above $81 a barrel Thursday in Asia as a rebound in regional stock markets and a weaker dollar helped push crude higher.

Benchmark oil for December delivery was up 95 cents to $81.39 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell $1.90 to settle at $80.44 on Wednesday.

Oil traders often look to stock markets as a measure of overall investor sentiment, and most Asian indexes rose Thursday, led by gains of about 2 percent in Japan and Hong Kong. The dollar weakened against the euro and the U.K. pound, which makes crude cheaper for investors with those currencies. It was little changed against the yen.

Oil has fallen from $88 last week on concerns that measures by Chinese policymakers to contain inflation will undermine economic growth and demand for crude. China has led the world this year in fuel consumption growth as developed countries struggle to regain robust economic expansions after last year's recession.

"If the Chinese government raises interest rates or cuts off the money supply to try to cool down growth, the price of oil will pull back further," Sander Capital Advisors said.

In other Nymex trading in December contracts, heating oil rose 3 cents to $2.28 a gallon and gasoline gained was flat at $2.16 a gallon. Natural gas fell 3 cents to $4 per 1,000 cubic feet.

In London, Brent crude added $1.05 to $84.33 a barrel on the ICE Futures exchange.

[Associated Press; By ALEX KENNEDY]

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