Crude oil prices steadied in cautious trading today, ahead of fresh US economic data, and as the under-pressure dollar made some modest gains against the euro.
New York's main contract, light sweet crude for delivery in November, eased eight cents to $81.17 a barrel. Brent North Sea crude for December added seven cents to $82.52 in London deals.
The dollar rebounded strongly against the euro today as investors adjusted positions after the common currency had reached the highest level for almost nine months.
Despite the dollar's slim gains, the greenback will likely remain under pressure after US Federal Reserve chairman Ben Bernanke said on Friday that the Fed was ready to ramp up extraordinary measures to revive the economy.
A weak greenback makes dollar-denominated commodities like oil cheaper for buyers holding rival currencies, thereby boosting investor demand. When the dollar strengthens, the opposite occurs.
Crude oil had briefly topped $85 last week, helped by data showing surprisingly strong global energy demand, before slipping on profit-taking.
Traders also digested OPEC's decision to maintain its output target, alongside news of a surprise drop in US crude reserves. The Organisation of Petroleum Exporting Countries (OPEC) left its official oil production ceiling unchanged last week, in line with expectations in the face of an uncertain economic outlook.
OPEC, which pumps 40% of the world's oil, agreed to keep its target at 24.84 million barrels a day.
