Oil hovers at $102
Oil prices were steady on Monday, finding support from a sharp decline in the U.S. dollar and expectations oil cartel OPEC would leave its output unchanged.
FTSE seen opening higherU.S. light crude for April delivery rose 16 cents to $102.00 a barrel by 5.32 a.m. British time.
London Brent crude rose 21 cents to $100.31.
"The weak dollar is a big factor in supporting oil prices at the moment. Investors are also likely to hold on to oil until OPEC's meeting on Wednesday because they might just cut output," said Rowan Menzies, head of research at Commodity Warrants Australia.
Crude oil is priced in U.S. dollars so when the U.S. currency declines oil prices rise to reflect that.
"Recession in the U.S. is still a worry but that is not an immediate concern at the moment," said Menzies
The U.S. dollar fell to a record low against a basket of major currencies as expectations for more aggressive Federal Reserve interest rate cuts encouraged funds to pour money into commodities to hedge against inflation.
A combination of a weak U.S. dollar, supply disruptions from Ecuador and a fire at a European natural gas terminal had helped oil rally to a record $103.05 on Friday, beating the inflation-adjusted high of $102.53 reached in 1980 after the Iranian revolution.
Rumbles from the Organization of the Petroleum Exporting Countries (OPEC) over the weekend also strengthened expectations the cartel will keep supply levels unchanged, rebuffing calls from the U.S. to hike output and tame prices.
OPEC members Venezuela and Libya said that OPEC would likely keep its oil output steady when it meets on March 5 in Vienna, due to uncertainty about the U.S. economy.
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