NEW YORK (Reuters) - Oil rose on Friday as cold weather hit the giant U.S. Northeast heating oil market and the dollar recovered from fresh lows.

U.S. light crude oil rose 89 cents at $98.18 a barrel -- the highest settlement on record -- but below the all-time intraday high of $99.29 a barrel hit on Wednesday.

London Brent crude gained $1.26 to $95.76.

Gains came as the dollar rebounded from fresh lows against the euro earlier Friday after comments from a euro zone policymaker.

Concerns of a supply shortfall ahead of the Northern Hemisphere winter have also supported prices in their nearly 45 percent rise to near $100 a barrel since mid-August.

U.S. heating oil prices hit a fresh record on Friday as colder weather hit the U.S. Northeast, the world's biggest heating oil market, helping push crude higher.

"Strength in middle distillates, such as heating oil and aviation fuel, as well as gasoline, is showing up today," said Andy Lebow, broker at MF Global in New York.

Oil had fallen earlier on signs of higher OPEC shipments in early December. OPEC oil exports, excluding Angola, will rise by 720,000 barrels per day (bpd) in the four weeks to December 8, according to Roy Mason of tanker tracker Oil Movements.

The increase will be the biggest this year, with most of the extra supply heading to Western refiners. Mason estimated that seaborne exports from the 11 OPEC countries would rise to 24.54 million bpd from 23.82 million bpd to November 10.