Oil Rises to 7-Week High as Global Demand Is Revised Higher

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"Prices are up 66% this year."

Crude oil rose to a seven-week high in New York on speculation world energy use will grow as the economy rebounds and as a weaker dollar spurs commodity demand.

The Organization of Petroleum Exporting Countries increased its 2010 global oil-consumption forecast on economic expansion in emerging economies. Oil gained 1.2% and gold rose to a record as the dollar fell to the lowest level against the euro since August 2008.

"Prices are higher in anticipation of higher demand," said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. "We have yet to see demand recover, but as long as there are upward revisions of future demand, there will be support for prices."

Crude oil for November delivery rose 88 cents, or 1.2%, to $74.15 a barrel at 2:46 p.m. on the New York Mercantile Exchange, the highest settlement since Aug. 24. Prices are up 66% this year.

The slumping dollar heightened the appeal of energy and metals as an inflation hedge. The U.S. currency depreciated 0.4% to $1.4826 per euro, from $1.4773 yesterday, after trading at $1.4876, the weakest level since Aug. 22, 2008.

Gold futures for December delivery gained $7.50, or 0.7%, to settle at $1,065 an ounce on the Comex division of the New York Mercantile Exchange. The Reuters/Jefferies CRB Index of 19 commodities advanced 0.3% to 268.05, the highest level since Aug. 5.

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