Oil price futures closed lower on Friday - but the weaker US dollar has prompted somewhat of a recovery this morning.
Oil prices are up this morning as the US dollar continues to suffer as investors opt for riskier options.
Crude oil futures settled lower on Friday after government figures showed a bigger than expected build in crude oil stockpiles.
"Continued weakness in the Dollar pushed oil higher, regaining most of last weeks’ losses. The Dollar lost nearly 0.5% against a basket of leading currencies on Monday, and focus will remain on the currency as Obama continues to meet dignitaries in Asia," reads an analyst report from ODL Markets.
Benchmark crude for December delivery was up $1.02 to $77.37 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange.
On Friday, the contract fell to as low as $75.57, the cheapest since Oct. 15, before settling down 59 cents at $76.35.
Some analysts expect oil demand to grow next year, especially in emerging economies, as a global economic recovery strengthens. Bank of America Merrill Lynch raised its forecast for the average price of crude to $85 a barrel from $75.
It has meanwhile been reported that the OPEC President has said that OPEC are facing uncertainty in the oil market, and it is too early to predict whether or not to revise crude production levels.
OPEC are due to meet on Dec 22 to decide on production policy
