| GEO Business | | Oil prices higher amid weak dollar | Updated at: 0155 PST, Tuesday, November 24, 2009
 NEW YORK: Oil prices rose Monday as a weaker dollar helped boost demand for commodities.
New York's main contract, light sweet crude for January delivery, rose nine cents to 77.56 dollars a barrel.
London's Brent North Sea crude for January delivery added 26 cents to 77.46 dollars per barrel.
Prices came off from their intraday highs on concerns over demand amid worries over economic recovery prospects.
"While oil, like other consumables, has benefitted from the store of value theme, part of the rationale behind that has been the expectation of rising demand as a consequence of recovery," said analyst Mike Fitzpatrick of MF Global.
"If that foundation is questioned, the house of cards comes apart," he said.
The dollar weakened Tuesday, prompting a run on commodities and equities in early trading, with traders reacting to exit strategy comments at the weekend from a Federal Reserve official.
Comments by Federal Reserve Bank of St. Louis chief James Bullard that he would prefer to keep the central bank's asset-buying program active beyond its current cut-off date pushed the dollar lower, analysts said.
An extension of the program, widely considered a negative factor for the US currency, would give more flexibility to US policymakers, he said. |  |
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