By Mark Shenk Nov. 10 (Bloomberg) -- Crude oil fluctuated as Tropical Depression Ida weakened and the dollar gained against the currencies of major U.S. trading partners. Ida’s sustained winds have dropped to 35 miles (56 kilometers) per hour from 45 mph earlier, the National Hurricane Center said on its Web site. Producers have begun preparations to resume operations. A stronger dollar reduces the appeal of commodities to investors looking for an inflation hedge. “I doubt there was any severe damage caused by Ida,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis. “There will probably be some impact on next week’s inventory data, but that’s it.” Crude oil for December delivery fell 32 cents, or 0.4 percent, to $79.11 a barrel at 11:36 a.m. on the New York Mercantile Exchange. Futures dropped as much as 88 cents and climbed as much as $1.08 today. Prices have increased 77 percent this year. Ida was centered 30 miles east-southeast of Mobile, Alabama, at 9 a.m. Central time and was moving northeast at 9 mph, the hurricane center said. Workers were evacuated in the Gulf of Mexico and companies idled about 30 percent of oil and 28 percent of natural gas output, according to government data. The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six major U.S. trading partners including the euro, yen and pound, increased 0.2 percent to 75.181, from 75.026 yesterday, when the gauge touched 74.930, the lowest level since August 2008. The index has lost 7.5 percent in 2009. “We are still pinned to the financial markets,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “Economic indicators are the leaders right now, so we will keep an eye on the dollar and S&P 500.” Brent crude for December settlement fell 8 cents to $77.69 a barrel on the London-based ICE Futures Europe exchange.

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