Crude oil hovers over $77

Crude oil traded near $77 a barrel in New York as the dollar weakened, spurring investor demand for commodities as a hedge against inflation, Bloomberg reported.

Oil fell 2.3 percent yesterday after U.S. government data showed an increase in stockpiles held in the world’s biggest energy consumer.

The dollar pulled back against the euro before a monthly industry report that may indicate the U.S. economic revival is spreading beyond manufacturing.

Crude oil for January delivery was at $76.66 a barrel, up 6 cents, in electronic trading on the New York Mercantile Exchange at 2:07 p.m. in Singapore.

Yesterday, the contract fell $1.77 to settle at $76.60 a barrel.

Prices have gained 72 percent this year.

Brent crude oil for January settlement traded at $78.20 a barrel, up 32 cents, on the London-based ICE Futures Europe exchange, at 2:08 p.m. in Singapore.

The contract fell $1.47, or 1.9 percent, to end yesterday’s session at $77.88 a barrel.