Oil Hovers Below $79 after 3-Day Slide

SINGAPORE (AP) -- Oil prices lingered below $79 a barrel today in Asia after three days of losses as investors eyed a volatile U.S. dollar.

Crude jumped to a 12-month high at $82 a barrel last week as the dollar weakened amid concerns that massive global stimulus spending will eventually spark inflation. Since oil is priced in dollars, a drop in the U.S. currency makes it cheaper to international investors.

Some economists expect the dollar and oil to stabilize over the next three to six months as inflation fears ease. And burgeoning inventories will likely satisfy any boost in demand triggered by a recovering global economy.

 

©2009 Associated Press. All rights reserved. This material may not be published, rewritten, or redistributed.