Oil hovers above $81 after surging to 3-month high

SINGAPORE — Oil prices hovered above $81 a barrel Tuesday in Asia after surging stock markets and a weaker dollar helped boost crude to nearly a three-month high. Benchmark crude for September delivery was up 9 cents to $81.43 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $2.39, or 3 percent, to settle at $81.34 on Monday, the highest since May 4. The Dow Jones industrial average rose 2 percent Monday on better than expected manufacturing results in the US and Europe. Most Asian stock markets advanced Tuesday, a key signal oil traders watch as a gauge of overall investor sentiment. A weaker dollar also helped boost crude since that makes commodities cheaper for investors with other currencies. The euro fell to $1.3164 on Tuesday from a three-month high on Monday of $1.3178 and the dollar eased to 86.35 yen from 86.46 yen. Investors will be closely watching weekly US crude inventory data later Tuesday and Wednesday and July employment figures Friday. "The more important price driver will be forthcoming at week's end in the form of the monthly employment report," Ritterbusch and Associates said in a report. In other Nymex trading in September contracts, heating oil rose 0.62 cent to $2.160 a gallon, gasoline was steady at $2.169 a gallon and natural gas jumped 2.9 cents to 4.730 per 1,000 cubic feet. Brent crude was up 9 cents to $80.91 a barrel on the ICE futures exchange. — AP