Crude prices jump on weaker dollar

Crude oil prices were up Tuesday as the US dollar weakened against the euro after gains early in the session, and on the possibility that refiners could up their demand for crude oil, driving prices higher.

Also sending prices higher were comments from a Libyan official that oil prices are likely to rebound, a report that Organization of Petroleum Exporting Countries Venezuela is ready to propose OPEC output cuts if oil prices continue to fall, and on forecasts that the US Energy Information Administration will report another decline in US gasoline inventories when it releases its weekly data on Wednesday.

Additionally, reported breaches in the cease-fire in Georgia increased concerns about supply disruptions in the region.

September contracts for West Texas Intermediate crude added $1.54 to $114.41 per barrel on the New York Mercantile Exchange, while Brent crude was last reported up $1.11 to $113.05 per barrel on the ICE Futures Europe exchange in London.

In afternoon trade, Nymex September gasoline futures added 6 cents to $2.88 per gallon while October heating oil was also up 6 cents, to $3.18 per gallon and October natural gas traded even at $8 per million British thermal units.