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. Last Updated: 07/27/2016

Oil Rises to 10-Month High as Dollar Falls and Revival Looms

NEW YORK — Oil rose nearly $1 toward $74 a barrel to settle at a 10-month high on Friday as data in the United States promised economic recovery and a potential revival in energy demand.

U.S. crude for October delivery settled up 98 cents at $73.89 per barrel, the highest settle since Oct. 20. London Brent crude for October settled up 86 cents at $74.19. Crude rose $6.38 over the week, nearly 10 percent, from the $67.51 settle on Aug. 14.

“The primary source of support again tended to be spillover from the financial space that included a weakening dollar and associated strengthening in the stock indexes,” said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.

The dollar was down against the euro, helping to support commodity prices, with investors showing some appetite for risk. Home sales data for July showed recovery in the U.S. housing market, while Federal Reserve Chairman Ben Bernanke said the global economy appears to be recovering.

Bernanke told a Fed conference that the global economy was on the mend, though critical challenges remain and recovery is likely to be sluggish.

Tighter regulation of the energy market may take the edge off high prices, Commerzbank said in a note on Thursday. “The significant rise in the oil price in the first half of the year is due in large part to a recovery in investment by financial investors,” analyst Eugen Weinberg at Commerzbank wrote in its Commodities Spotlight Energy newsletter.

“If their influence is reduced by the [Commodity Futures Trading Commission’s] actions and sanity prevails, the oil price will fall.”

The CFTC is widely expected to introduce stricter position limits for nonphysical investors in commodities before the end of 2009.