LONDON:'' Oil rose to around $82 a barrel on Monday, Nov 1 as expectations the U.S. Federal Reserve would commit to a new round of monetary stimulus this week prompted further weakness in the dollar.
The Fed is widely expected to announce new bond purchases, known as quantitative easing, to pump more money into the U.S. economy, the world's largest oil consumer, when its two-day meeting ends on Wednesday.
U.S. crude for December rose 71 cents to $82.14 a barrel by 1052 GMT. ICE Brent was up 76 cents to $83.91.
"The dollar's weakened and the Chinese data is a good reason for the market being higher," said Christopher Bellew, a broker at Bache Commodities in London.
"In general, the market is in a sideways range, and we're very close to the top of that sideways range as we get to $85 or so. If the dollar strengthens again, we could come back towards $80," he said, referring to Brent.
Some economists expect the Fed to buy between $80 billion and $100 billion worth of assets per month. Estimates for how much it will eventually spend vary widely, from $250 billion to as high as $2 trillion.
Some analysts said a Fed announcement at the low end of expectations could put pressure on oil.
"We reiterate our view that the markets will likely find the Fed's move slightly disappointing, leading to a short-term period of price weakness across most markets," said Edward Meir, an analyst at MF Global, in a report.
The dollar fell against a basket of currencies on Monday, slipping back towards a 15-year low versus the yen. A weaker dollar can boost the appeal of commodities as an investment.
Oil also rose following unexpectedly strong manufacturing data from China, the world's second-largest oil consumer, which also gave a lift to shares in Europe and Asia.
Two surveys of the manufacturing sector, which are designed to provide an early indication of conditions in a broad range of industries, both jumped to six-month highs in October.
Much of the growth in global oil demand this year is coming from China and other emerging economies, offsetting largely stagnant consumption in Europe and the United States.
Oil in New York has traded mostly between $70 and $85 for the past year. The oil minister for Saudi Arabia, OPEC's top exporter, said on Monday he hoped prices would stay where they are now. - Reuters
The Fed is widely expected to announce new bond purchases, known as quantitative easing, to pump more money into the U.S. economy, the world's largest oil consumer, when its two-day meeting ends on Wednesday.
U.S. crude for December rose 71 cents to $82.14 a barrel by 1052 GMT. ICE Brent was up 76 cents to $83.91.
"The dollar's weakened and the Chinese data is a good reason for the market being higher," said Christopher Bellew, a broker at Bache Commodities in London.
"In general, the market is in a sideways range, and we're very close to the top of that sideways range as we get to $85 or so. If the dollar strengthens again, we could come back towards $80," he said, referring to Brent.
Some economists expect the Fed to buy between $80 billion and $100 billion worth of assets per month. Estimates for how much it will eventually spend vary widely, from $250 billion to as high as $2 trillion.
Some analysts said a Fed announcement at the low end of expectations could put pressure on oil.
"We reiterate our view that the markets will likely find the Fed's move slightly disappointing, leading to a short-term period of price weakness across most markets," said Edward Meir, an analyst at MF Global, in a report.
The dollar fell against a basket of currencies on Monday, slipping back towards a 15-year low versus the yen. A weaker dollar can boost the appeal of commodities as an investment.
Oil also rose following unexpectedly strong manufacturing data from China, the world's second-largest oil consumer, which also gave a lift to shares in Europe and Asia.
Two surveys of the manufacturing sector, which are designed to provide an early indication of conditions in a broad range of industries, both jumped to six-month highs in October.
Much of the growth in global oil demand this year is coming from China and other emerging economies, offsetting largely stagnant consumption in Europe and the United States.
Oil in New York has traded mostly between $70 and $85 for the past year. The oil minister for Saudi Arabia, OPEC's top exporter, said on Monday he hoped prices would stay where they are now. - Reuters
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