Dollar Continues To Sink As Oil Prices Rise

Oil prices rose sharply on Monday as a weaker dollar helped boost demand for the commodity.

New York's main contract, light sweet crude for January delivery, advanced 97 cents to 78.44 dollars a barrel. The December contract had expired at 76.72 dollars on Friday.

On Monday in London, Brent North Sea crude for January delivery climbed 1.15 dollars to 78.35 dollars a barrel.

"We are seeing the US dollar weaken against the euro and investors continue to see oil at this low end of the trading range to be a buy opportunity," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

"Investors see the US dollar to be on a downward trend for the long term and so there are continued inflows into oil and other commodities," he said.

A weaker greenback makes crude oil and other commodities, such as gold, cheaper for holders of other currencies, driving demand.