U.S. crude futures edged up on Tuesday to a one-year high near $80 a barrel on a weak dollar and firm U.S. stock market.
Strong earnings have boosted U.S. equity markets, with the Dow industrials up another 1 percent on Monday, beating down the dollar to a fresh 14-month low to make a range of commodities more appealing for non-dollar buyers.
Apple became the latest company to report solid quarterly numbers, after the close of New York markets. <.N>
U.S. crude for November delivery rose 34 cents to $79.95 a barrel by 0225 GMT British time, its highest since October 14 last year. London Brent crude rose 36 cents to $78.13 a barrel.
The nine straight days of gains have lifted oil by 14.5 percent and equal a run seen in July, putting crude on track for its strongest monthly performance since May, although there are some concerns about whether the rally can continue.
Oil broke above resistance at $75. $80 is the next target although there is little in the way of fundamental support. OPEC is overproducing and even though there is talk of a severe winter, distillate stocks are at 26-year highs, MF Global analyst Edward Meir said. You have the November contract expiration. That could also weigh as it gets flushed out and drags the rest of the curve down. I'd be cautious today.
The soggy dollar trading near a 14-month low and just shy of $1.50 versus the euro also supported as investors bet the Federal Reserve will hold U.S. interest rates near zero.
For a graphic showing the strengthening inverse correlation between the two markets, click:
U.S. weekly oil inventory data from the American Petroleum Institute is released later in the day.
A preliminary Reuters poll of analysts forecast the data will show a 2 million barrel build in crude stocks last week. Distillate stocks were seen falling by 1.6 million barrels while gasoline inventories were forecast to fall by 1.5 million barrels.
(Editing by Michael Urquhart)