Oil rises above $78 as US dollar slides

SINGAPORE (AP) — Oil prices rose above $78 a barrel Monday in Asia as a weaker U.S. dollar offset signs of slumping consumer demand.

Benchmark crude for December delivery was up 94 cents to $78.37 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange.

Crude has traded inversely to the dollar for months as investors buy commodities such as oil as a hedge against inflation and a weaker U.S. currency. Oil rose to $82 last month, its 2009 high, from $32 in December.

The euro rose to $1.4929 in Asian trading Monday from $1.4885 on Friday while the dollar was steady near 90 yen.

Crude fell $2.19 to settle at $77.43 on Friday after the Labor Department said the unemployment rate jumped more than expected in October to 10.2 percent, the highest since 1983.

The dismal jobless data stirred concerns that U.S. consumer demand will remain sluggish despite an overall economic recovery. Investors will be eyeing third-quarter earnings reports this week from retailers such as Wal-Mart Stores Inc., Abercrombie&Fitch Co., Macy's Inc. and JC Penney Co. for clues about the strength of consumer spending.

In other Nymex trading, heating oil rose 1.95 cents to $2.02 a gallon. Gasoline for December delivery gained 2.03 cents to $1.94 a gallon. Natural gas for December delivery jumped 3.6 cents to $4.63 per 1,000 cubic feet.

In London, Brent crude for December delivery rose 89 cents to $76.76 on the ICE Futures exchange.