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Oil prices up on weak dollar

Oil prices - Bleak US economic outlook capping gains
Oil prices - Bleak US economic outlook capping gains

World oil prices inched higher as a weaker dollar outweighed a bleak US economic outlook.

US crude for November delivery rose 35 cents to $76.84 a barrel.

Brent North Sea crude climbed 19 cents to $79.06.

A weakened dollar makes crude more attractive to investors using other currencies.

Losses on the dollar were sparked by the US Federal Reserve's announcement last week that it was ready to revive stimulus measures if the economy faltered.

Data released on Friday by the US census bureau showed new home sales remaining at their second lowest rate on record in August as rock-bottom interest rates and low prices failed to spur investment.