Crude prices jumped on Monday as the U.S. dollar declined and supply disruptions in a U.S. pipeline rose demand concerns.
The dollar weakened 0.11 percent to $1.5828 per euro by 12:37 p.m. on Monday after having gains during over-night trading to $1.56, prompting investors to spur money into crude oil and other commodities as a hedge against inflation.
Meanwhile, a meeting of the Group of Seven Nations said in a statement on Friday that they are concerned about the possible implications for economic stability of worldwide major currencies. However, the Group didn't stop the U.S. dollar to continue dropping.
Crude futures for May rose 0.83 cents or 0.75 percent to $110.97 a barrel on the New York Mercantile Exchange by 12:08 p.m. Prices reached as much as $112.21 on April 9th as inventories in the U.S. declined unexpectedly 3.1 million barrels.
Prices of Brent crude for three months were up 0.79 cents or 0.73 percent to $108.91 a barrel on London's ICE Futures Exchange today.
Adding pressure to prices today, Royal Dutch Shell's Capline pipeline -through which oil from the Gulf of Mexico flows to the U.S. Midwest- restarted on Monday after a temporary shutdown due to a leak.
An operator of Shell Oil said it will return to normal in a few days, Reuters reported. Capline system works with 1.1 million barrels a day.
Also in Nigeria, production was reduced by 5,000 barrels a day in an Eni SpA's oil station due to a fire result of a sabotage the company said on a statement on its website.
Some analysts completed the rise in oil to a report on Monday said gasoline station's sales rose 1.1 percent despite of high record prices in the pump, the Commerce Department said.
However, forecasts made by the International Energy Agency lowered its expectations showing global oil demand this year would be of 310,000 barrels a day .