RTRS: Oil jumps $1 to above $78 on hurricane fears, dollar
PERTH (Reuters) - Oil rose more than $1 to above $78 a barrel on Monday, recouping some of the previous session's near 3 percent loss, on fears a powerful hurricane would cut U.S. oil and gas supplies and also lifted by the falling dollar.
Hurricane Ida roared on Sunday through the Gulf of Mexico, where important oilfields are located, after triggering floods and mudslides that killed 124 people in El Salvador, and was expected to weaken gradually on Monday as it heads for some of the facilities in the central Gulf.
U.S. crude for December delivery rose 96 cents to $78.39 a barrel by 0559 GMT (12:59 a.m. EST) after earlier surging to $78.45. London Brent crude also rose 94 cents to $76.81.
Oil has gained around 70 percent so far this year but is still about 47 percent below the record high of above 147 hit in July last year.
"Reports of tropical storms potentially impacting operations in the Gulf of Mexico would be supportive in the near term, but investors generally focus on economic and inventory data for direction," Australia & New Zealand Bank said in a research note on Monday.
Analysts said the falling U.S. dollar versus other commodity-linked currencies, led by the New Zealand dollar, also lent support to oil and commodities such as soy and crude palm oil, while gold jumped to another record on safe-haven buying.
