LONDON, Nov 28: Oil spiked on Monday, propelled by a struggling dollar, swirling speculation over an Italy bailout, upbeat US data and geopolitical tensions in the crude-rich Middle East, traders said. New York’s main contract, light sweet crude for delivery in January put on $1.63 to $98.40 a barrel, having earlier jumped as high as $100.74.

Brent North Sea crude for January soared $2.11 to $108.51.

“Oil prices are increasing significantly as the week begins,” said Commerzbank analyst Carsten Fritsch.

“Prices are finding support from a weaker US dollar, rumours of a large IMF loan for Italy and robust US retail sales figures over the Thanksgiving weekend, which is having a positive impact on market sentiment.”

The weaker US unit makes dollar-denominated crude cheaper for buyers using other, stronger currencies. In turn, that tends to boost oil demand and prices.

Markets were also keeping a close eye on Iran, which is the second biggest Opec oil producer after Saudi Arabia.

EU nations were expected to unveil more sanctions against Iran at a foreign ministers’ meeting on Thursday.

France has called for a freeze on Iranian central bank assets and an embargo on Iranian oil.

Britain unveiled new sanctions on Iran on Nov 14, in conjunction with similar measures by the United States and Canada.—AFP