Oil extends gains despite strengthening dollar

Crude prices rose on Tuesday as investors weighed economic recovery outlook against strengthening U.S. dollar.

Light, sweet crude for December delivery rose 1.47 dollars, or 1.9 percent, to settle at 79.60 dollars a barrel on the New York Mercantile Exchange.

Oil gained mainly on hopes that energy demand will be finally picked up as global economy rebounds from the worst recession after the World War II. Strong manufacturing data from both the United States and China, top two energy consuming countries, drove crude up 1.5 percent on Monday.

The dollar rose against the euro on Tuesday as the Federal Reserve met to discuss monetary policies. Although the central bank wasn't expected to take any action on interest rates, investors still focused on the statement after the two-day meeting, hoping to get more clues on the state of economy.

In London, Brent Crude for December delivery added 1.56 dollars to settle at 78.11 dollars a barrel on the ICE Futures exchange.

Source:Xinhua