Oil prices climb as dollar sinks

NEW YORK: Oil prices climbed on Monday as the dollar sank against major currencies after a meeting of the Group of 20 powerful economies and stock markets rallied.

New York's main contract, light sweet crude for delivery in December, closed at 82.52 dollars a barrel, up 83 cents from the Friday close.

In London, Brent North Sea crude for December delivery rose 96 cents to settle at 83.54 dollars.

The oil market gained support from a modest stocks rally on Wall Street, but most of all was lifted by a fresh weakening of the dollar.

Deutsche Bank analyst Adam Sieminski said the dollar and the S&P 500 index had been determining the gain in oil prices.

A weaker US currency makes dollar-denominated oil cheaper, boosting demand and leading to higher prices.

"Weakness in the dollar is driving up crude oil and all the commodities, including gold, silver, copper," said Andy Lipow at Lipow Oil Associates.

The dollar dropped, hitting a fresh 15-year low against the yen, following the G20 meeting over the weekend in South Korea.