Concerns that the cost of the bailout could escalate helped push down the dollar Monday. Investors often buy crude futures as a hedge against a weakening dollar and inflation. The 15-nation euro fell Tuesday to $1.4725 from $1.4804 on Monday. The dollar rose slightly to 105.75 yen.
OPEC's decision earlier this month to cut production by 520,000 barrels a day and output shutdowns and damage to oil installations on the Gulf of Mexico coast caused by Hurricane Ike and Gustav have helped spark the jump in oil prices from $90 a barrel last week.
"Those factors are coming back to the fore. They were glossed over a bit by the crisis in financial markets," Burg said. "Crude oil supplies are quite tight at present."
In other Nymex trading, heating oil futures fell 1.8 cents to $3.025 a gallon, while gasoline prices rose 0.12 cent to $2.705 a gallon. Natural gas for October delivery rose 7.6 cents to $7.734 per 1,000 cubic feet.
In London, November Brent crude fell $1.69 to $104.35 a barrel on the ICE Futures exchange.
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