Oil prices rise after mixed US report

Adding to upward pressure, the dollar weakened against the euro and yen. Commodities such as oil are seen as a hedge against inflation when the dollar falls, and a weaker U.S. currency makes oil less expensive to overseas investors.

Crude oil futures have risen almost 30 percent this year on steadily rising demand in emerging economies, sluggish growth in new supply and unrest in some major producing nations. The Organization of Petroleum Exporting Countries has also stood firm on output policy since loosening it late last year.

President Bush is expected to urge OPEC's top producer, Saudi Arabia, to pump more oil during his visit to the Middle East this week.

Oil prices may be more volatile in coming days as investors square positions ahead of the June contract's expiration next week.

In other Nymex trading, heating oil futures rose 6 cents to $3.6778 a gallon while gasoline prices added less than a penny to fetch $3.1877 a gallon. Natural gas futures were steady ato $11.593 per 1,000 cubic feet.

In London, June Brent crude rose 59 cents to $122.45 a barrel on the ICE Futures exchange.

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Associated Press writer Gillian Wong contributed to this report from Singapore.