Oil prices rose by nearly 2% this evening as the US dollar slid and data showing a rebound in US housing starts added to hopes that its economy may be stabilising.
US crude traded up $1.39 to $72.01 a barrel, while London Brent crude gained $1.51 to $71.75.
The dollar fell across the board, pressured by comments from Russia suggesting a need for a global reserve currency other than the US currency. A weaker dollar can strengthen commodity markets by improving the purchasing power of buyers using other currencies.
Expectations of an economic recovery drove crude prices to a near eight-month high above $73 a barrel last week. The slumping world economy has dampened global fuel demand, sending crude prices off record highs near $150 a barrel hit in July.
Traders were also keeping an eye on unrest in Iran, where the OPEC nation's top legislative body ruled out annulling a disputed presidential poll but said it was prepared for a partial recount.
