Crude Oil Futures Rise on Weak Dollar

NEW YORK (TheStreet) -- Crude oil rallied alongside most of the commodities sector Monday spurred by a weak greenback. Trade data from China showing a strong demand for energy also drove prices higher, helping mitigate concerns about high supply levels in the U.S.

Crude futures for January delivery added 59 cents, or 0.8%, to $78.06 a barrel and stocks across the oil sector ticked higher. Chevron (CVX Quote) added $1.99, or 2.6%, to $78.78, ConocoPhillips (COP Quote) rose by 49 cents, or 0.9%, to $52.57 and ExxonMobil (XOM Quote) gained $1.47, or 2%, to $75.85.

Earlier this morning, Eni SpA (E Quote) announced its purchase of stakes in two Ugandan oilfields from Holly (HOC Quote), a British exploration and production company, for as much as $1.5 billion.

Even the oil services sector traded in green territory, despite the fourth-quarter loss reported by BJ Services (BJS Quote) on Monday and estimate cuts for Smith International (SII Quote) and Weatherford International (WFT Quote). Weatherford's stock was trading down by 53 cents, or 3.1%, at $16.40, although the Oil Services HOLDRs (OIH Quote) exchange-traded fund was up by $2.62, or 2.2%, at $119.72.

According to Chinese trade data released early Monday, the country's implied oil demand was more than 10% higher than last year's comparable period, painting a robust demand picture since China is the world's second-largest energy user.

Also supporting higher energy prices on Monday was a weaker U.S. dollar. Over the weekend, St. Louis Federal Reserve President James Bullard said he favored the Fed keeping up the mortgage asset purchase program to encourage economic growth. Meanwhile, the European Central Bank indicated its readiness to move out of quantitative easing strategies.

Natural gas for January delivery was up by nearly 2 cents, or 0.4%, at $4.78 and the January heating oil contract was also up by nearly 2 cents, or 0.8%, at $2.03. Gasoline for January delivery, meanwhile, rose by 1 cent, or 0.7% to $2.01 a gallon during Monday's afternoon trading session.

-- Written by Melinda Peer in New York.