Oil up on weak dollar as U.S. payrolls slip

Oil prices rose on Friday as investors bet that worse-than-expected unemployment in the United States bolstered the case for looser monetary policy that would weaken the dollar.
The oil futures complex got further support as a strike at France's top oil port, now in its 12th day threatened to cut European oil products output. Also, a surprisingly sharp cut in the U.S. government's corn crop forecast sent cash ethanol prices sharply higher.
U.S. nonfarm payrolls fell 95,000 in September, the U.S. Labor Department said. Private sector jobs rose 64,000, less than the consensus forecast, after a 93,000 rise in August.
U.S. crude for November delivery rose $1, or 1.22%, to $82.67 per barrel by noon EDT, having traded from $80.30 to $83.13.
ICE Brent November crude rose 63 cents, or 0.76%, to $84.06 a barrel.
"The negative unemployment report makes quantitative easing after the election a virtual certainty. This expectation has already affected the dollar's value and pushed energy prices higher," said John Kilduff of Again Capital LLC in New York.
"Another leg lower for the dollar is likely thereby creating more commodity inflation. It's not a demand issue with the employment backdrop; it's financial physics at work."
The U.S. dollar slid to a 15-year low against the Japanese yen after the payrolls report bolstered the expectation for further asset purchases from the U.S. Federal Reserve.
The dollar also fell sharply against the euro on the jobs data, but it recovered some of those losses after Eurogroup Chairman Jean-Claude Juncker said he was not happy with the euro's move to $1.4000, a level surpassed Thursday.
The dollar's weakness this week helped oil prices rally, with crude oil reaching $84.43 intraday on Thursday, a five-month high, before the dollar bounced and crude slumped as investors booked profits ahead of Friday's payrolls report.
A weak dollar boosts oil by making dollar-denominated commodities cheaper for buyers holding other currencies, lowering the value of greenbacks paid to producers and attracting investment looking to shift from cash to commodities.
U.S. stocks rallied, with the Dow Jones industrials moving above 11,000 for the first time since early May.
Four oil refineries in southern France face closure this weekend, the country's oil lobby said on Friday, after workers at a key oil port voted to continue a strike for a 12th day.
Earlier this week, the U.S. Energy Information Administration data showed U.S. crude stocks rose by a greater-than-expected 3.09 barrels last week, though refined fuel stocks fell.
Crude and refined oil stocks remained above year-ago levels, the EIA said.
The Organization of the Petroleum Exporting Countries meets in Vienna next week to consider production and market share policy with crude prices since May hemmed between the $64.24 intraday low on May 20, the weakest price since July 30, 2009, and the 2010 peak of $87.15 reached on May 3.