10 seconds ago 2009-12-04T07:00:04-08:00
Oil prices rose above $77 a barrel Friday as upbeat U.S. unemployment figures and a rally in stock markets were offset by a stronger dollar, which makes crude more expensive for investors holding other currencies.
By mid-afternoon in Europe, benchmark crude for January delivery was up $1.09 to $77.55 in electronic trading on the New York Mercantile Exchange. Earlier in the session, it fell as low as $75.57.
The contract gave up 14 cents to settle at $76.46 on Thursday.
Crude prices are have been slowly slipping toward the mid $70s since October, as high inventories continue to dampen hopes for a significant rise in oil demand.
On Friday, the Nymex contract rebounded after the U.S. Labor Department said the November unemployment rate had fallen to 10 percent from 10.2 percent in October, a 26-year high. Trading remained erratic.
The dollar's exchange rate is also considered a key factor influencing oil prices. With the U.S. currency recovering against the euro and the Japanese yen on Friday, investors holding those currencies may be looking elsewhere with oil, priced in dollars, becoming more expensive.
In other Nymex trading in January contracts, heating oil rose 2.67 cent to $2.0762 and gasoline advanced 3.27 cents to $2.0257. Natural gas jumped 14.3 cents to $4.602 per 1,000 cubic feet.
In London, Brent crude for January delivery rose $1.14 to $79.50 on the ICE Futures exchange.
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Associated Press writer Alex Kennedy in Singapore contributed to this report.
