UPDATE 8-Oil jumps 2 pct on Nigeria disruptions, weaker dollar

Tue Jun 23, 2009 8:34pm BST
 
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* ENI declares force majeure on Brass River crude exports

* Kuwait says no need for OPEC cut in September

* U.S. crude stocks seen lower in inventory reports (Updates with settlement prices, adds byline)

By Matthew Robinson

NEW YORK, June 23 (Reuters) - Oil rose nearly 2 percent on Tuesday as the dollar weakened and disruptions from OPEC member Nigeria stoked supply concerns.

U.S. crude CLc1 for August settled up $1.74 at $69.24 a barrel. London Brent crude LCOc1 gained $1.82 to settle at $68.80 a barrel.

The U.S. dollar fell against the euro on speculation the U.S. Federal Reserve may lower expectations of an interest rate rise when it concludes its meeting on Wednesday. [USD/]

The dollar's losses supported commodities denominated in the greenback, pushing up the benchmark Reuters-Jefferies CRB Index of 19 commodity futures .CRB.

"The weaker dollar is supportive and you have the supply disruptions in Nigeria and the turmoil in Iran," said Joseph Arsenio, managing director at Arsenio Capital Management in Larkspur, California.  Continued...

 

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