Oil extends rally as dollar hits 14-month low
Crude prices rose for the fourth consecutive day on Tuesday as the U.S. dollar fell broadly against a basket of major currencies, boosting commodities denominated in the greenback, Xinhua reported.
Light, sweet crude for November delivery gained 88 cents to settle at 74.15 dollars a barrel on the New York Mercantile Exchange.
The U.S. dollar index slid to a 14-month low on Tuesday, driving international investors to the oil market to hedge against inflation.
A weaker dollar tends to boost commodities priced in the U.S. currency as they become cheaper for holders of other currencies.
Meanwhile, the Organization of the Petroleum Exporting Countries raised its 2010 global demand forecast by 200,000 barrels a day, which also helped lift oil prices higher.
In London, Brent Crude for November delivery rose 1.04 dollars to settle at 72.40 dollars a barrel on the ICE Futures exchange.