Oil prices rose above $78 a barrel today as a weaker dollar and better-than-expected US consumer spending data boosted prices.
US crude futures for December delivery rose $2.30 to $78.65 a barrel, after reaching a high of $79.24 a barrel.
In London, Brent crude gained $2.14 to $78.45.
The main reason crude futures are up today is the weaker dollar, analysts said.
The US dollar slipped today against a basket of currencies after the US and China failed to reach an agreement on currencies at an Asia Pacific summit ahead of US President Barack Obama's visit to China.
Washington has said an undervalued yuan is contributing to trade imbalances between the United States and China. A weaker dollar typically supports commodities because dollar-priced contracts become cheaper for buyers using other currencies.
Further support came following strong US retail sales data for last month, boosting optimism about the economy.
Energy markets have been looking to wider economic data for signs of a rebound that could boost fuel demand, which has been hard hit by the recession.
US retail sales rose 1.4% in October, after a drop of 2.3% in September, mostly due to robust vehicle sales.
