Brent oil steadied above 109 dollars a barrel on Monday supported by a weak dollar, supply disruptions and a severe winter across North America.
Speculators and hedge funds have sharply increased bullish bets on crude oil to near their highest ever, U.S. market data showed.
Crude oil prices were driven higher by a jump in demand for U.S. heating fuel.
The dollar languished at a six-week low against a basket of major currencies, supporting commodities such as oil that are priced in the currency.
Brent crude oil rose five cents to 109.13 dollars a barrel, swinging between a high of 109.40 dollars and a low of 108.93 dollars.
U.S. oil gained 50 cents to 100.80 dollars.
“The U.S. winter and weak dollar are both supporting the oil market,” said Carsten Fritsch, senior analyst at Commerzbank.
“But there is a chance of a sharp correction.
“The risk is limited as long as the U.S. weather stays cold. But when it gets warmer, prices could come down.” Economic data are also a threat to oil.
