Oil rises to 8-month high on weaker dollar, Nigeria attacks

LONDON/SINGAPORE: Crude oil rose to the highest in eight months, set for its biggest quarterly gain since 1990, as the US dollar declined and militant attacks in Nigeria raised concern that supplies may be disrupted.

Oil jumped as much as 2.6 percent in New York, adding to Monday's 3.4 percent gain, as investors sought commodities as a hedge against inflation. The dollar fell as much as 0.3 percent against major currencies. Royal Dutch Shell Plc shut a field after an attack by Nigerian rebels, disrupting supply from Africa's largest producer.

"Now people are starting to pay attention to supply-side developments on the assumption that demand will rise from here onwards," said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd in Melbourne.