Oil prices clawed back some lost ground this evening as the dollar fell on hopes of an EU deal being reached over Greece's debt crisis. US crude climbed 80 cents to $81.41 a barrel, while Brent crude rose 77 cents to $80.39.
A weaker US currency tends to lift oil demand because dollar-priced crude becomes cheaper for buyers using stronger currencies.
Oil prices had fallen on Wednesday, as traders tracked the surging dollar as the euro was hammered by news of a credit rating downgrade to Portugal, which jangled market worries about a wider euro zone debt crisis.
Oil was also hit by US demand worries after a government inventory report showed a jump in American crude stocks.
