NEW YORK (CNNMoney.com) -- Crude topped $80 Wednesday ahead of a government inventory report. That extended the previous day's almost 2% advance, as investors dug into riskier assets on the dollar's weakness.
Crude oil for December delivery rose $1.03, or 1.29%, to $80.63.
Oil prices were boosted by a softened dollar. The greenback retreated against higher-yielding currencies such as the euro and the pound as investors await the Federal Reserve's wrap-up of its two-day meeting to discuss monetary policy.
Crude oil, like other commodities, is priced in dollars, and a weaker greenback can help support prices.
The dollar has also pushed gold into record-high territory.
The central bank is expected to hold interest rates at historic lows near zero, but investors will be looking for clues in the statement as to when the Fed will begin to remove the stimulus funds it has poured into the economy.
Without clear evidence of a sustainable recovery under way, Mike Fitzpatrick, vice president of energy at MF Global, says oil will not break through the year's high of $81.37 a barrel -- but it also won't drop below recent lows of $77 a barrel.
Traders will also look to October's nonfarm payroll report, due Friday, for clues about the strength of the economic recovery.
Inventory report. The Energy Information Administration will report weekly data on oil inventory later Wednesday. Analysts expect a rise of 1.3 million barrels in crude stocks, according to a consensus estimate collected by energy information provider Platts.
Analysts expect gasoline stockpiles to rise by 800,000 barrels, but expect distillates, used to make heating oil and diesel, to decrease by 1 million barrels.
Gasoline prices. The national average price for a gallon of regular unleaded gas decreased to $2.682, down two tenths of a cent from the previous day's $2.686, according to motorist group AAA. This is the fifth consecutive decrease.
