London: Oil consolidated above $82 (Dh301.59) a barrel yesterday after a near-3 per cent gain in the previous session, as a weaker dollar and optimism about the global recovery kept prices close to their highest level this month.
US crude for May delivery rose 2 cents to $82.19 a barrel at 0840 GMT, while Brent crude slipped 3 cents to $81.14 in London.
Prices have traded in a range between $69 and $84 this quarter, touching $82.78 on Monday. Prices hit $83.95 a barrel in January, the highest since October 2008 at the peak of the financial crisis.
A falling dollar has boosted commodities this week as they become cheaper for other currency holders. The euro has rebounded by almost 3 cents against the greenback since touching a 10-month low on Friday after Greece was able to sell government debt.
"The one thing that might help the oil price this week is what may well be seen as confirmation of the international economic recovery," said David Moore, Commodity Strategist at the Commonwealth Bank of Australia in Sydney.
US non-farm payrolls probably increased in March, boosted by temporary census hiring and a snapback from February's weather-related losses, a Reuters survey showed ahead of Friday's key report.
This would mark only the second time payrolls have increased since the recession started in December 2007.
Offset gains
But the proximity of oil prices to the top of this year's trading range and rising US crude inventories may offset gains, Moore said.
"Recent trading ranges create expectations. When the price gets close to the top, it falls back again. The market is not especially tight and the fundamentals that would underpin a sustained rise are not really in place," Moore said.
US crude inventories probably climbed by 2.6 million barrels last week, posting their ninth consecutive weekly increase.
