Oil settled higher on Monday after dollar fluctuations and the restart of some Libyan oil fields caused the market to vacillate, with prices testing lower before rallying to levels just below three-year highs.
Brent crude futures for March delivery settled up 42 cents, or 0.6 percent, at $69.03 a barrel, after earlier rallying to $69.51. Brent on Jan. 15 had hit $70.37, the highest since December 2014.
U.S. crude rose 12 cents, or 0.2 percent, to close at $63.49 a barrel.
The dollar index, which measures the greenback against six rival currencies retreated to near a three-year low, but pared losses as the U.S. government shutdown appeared poised to end. The index drifted lower again late in the session, weighing on crude a second time. [USD/]
Traditionally, a weaker dollar spurs buying of dollar-based commodities as they become cheaper for holders of other currencies. However, buying as the dollar weakens has been less frequent in recent months.
