Oil holds above US$100 as traders weigh tight market, dollar

Oil held well above US$100 a barrel after posting the biggest one-day advance since May, aided by a tightening market and a cooling in dollar gains.

Oil held well above US$100 a barrel after posting the biggest one-day advance since May, aided by a tightening market and a cooling in dollar gains.

West Texas Intermediate dipped after rallying more than 5 per cent on Monday. The dollar posted a third straight daily drop, making commodities priced in the currency more attractive, while a disruption along the Keystone pipeline cut shipments of some Canadian oil to US refiners.