Oil prices steadied this evening as the dollar rebounded from 15-month lows, countering data showing strong demand growth from number two consumer China.
US crude futures traded up 9 cents to $79.14 a barrel, after rising to $80 earlier in the day. Brent crude futures traded up 19 cents to $77.69 a barrel.
The dollar rallied back from 15-month lows against major currencies in a technical rebound after selling pressure failed to push the US currency through key levels. Investors have poured money into oil and other commodities this year when wider economic data suggests a rebound that could spur fuel demand.
Oil prices have felt pressure as well when investors retreat into safer havens, such as the dollar.
Further weakness came as oil and natural gas companies restored operations shut down due to Tropical Storm Ida earlier in the week in the Gulf of Mexico. The US Minerals Management Service said that 43% of Gulf of Mexico oil production and nearly 28% of natural gas output remained shut yesterday.
The rebound in the dollar helped counter data from China, which showed crude imports hit the second-highest level in October, showing that oil demand continues a gradual revival from a sharp slowdown in late 2008 and early this year.
Producer group OPEC raised its forecast for world oil demand growth slightly, but added that fuel consumption may not return to levels seen before the global economic slowdown.
Traders are also awaiting US inventory data from the US Energy Information Administration, delayed by one day until tomorrow due to the US Veteran's Day holiday.
