Crude oil rises as dollar weakens

The International Energy Agency raised its forecast for global oil demand this year for a second month as consumption in Asia rises more than expected. The dollar weakened, raising the appeal of crude for hedging inflation, and European stocks rose, extending the Stoxx Europe 600 Index's second weekly advance. “Oil is being helped by a weaker dollar and a somewhat friendlier equity market,” said Eugen Weinberg, analyst at Commerzbank AG in Frankfurt.

Crude oil for April delivery rose as much as 65 cents, or 0.8 percent, to US$82.76 a barrel in electronic trading on the New York Mercantile Exchange. It was at US$82.69 at 10:27 a.m. London time. Brent crude for April delivery rose 59 cents to US$80.87 a barrel on London's ICE Futures Europe exchange.

Oil rose 2 cents to US$82.11 in New York Thursday, the highest settlement since Jan. 11. Futures are poised for a weekly gain of 1.4 percent, after rising 2.3 percent last week.

The Organization of Petroleum Exporting Countries will maintain existing production quotas next week as prices hold above US$80 a barrel and the group awaits further confirmation of a recovery in demand, according to a Bloomberg News survey.

Oil may fall next week on rising U.S. inventories and speculation that demand will decrease next month, according to a Bloomberg News survey.

Twenty-three of 50 analysts and traders, or 46 percent, said oil will decline through March 19. Fourteen respondents, or 28 percent, predicted futures will increase and 13 said prices will be little changed. Last week, 38 percent of respondents surveyed forecast a price gain and an equal number a decline.

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