Oil Gains on Bhutto News, Dollar - WSJ.com

Crude-oil futures touched a fresh one-month high Thursday, boosted by the assassination of Pakistani opposition leader Benazir Bhutto, expectations of a sixth straight draw in U.S. crude oil stockpiles and a weakening dollar.

Light, sweet crude for February delivery on the New York Mercantile Exchange was recently up nine cents to $96.06 a barrel after rising as high as $96.70, the highest intraday price for a front-month contract since Nov. 27. Brent crude on the ICE futures exchange rose 26 cents to $94.20 a barrel.

Traders said while the assassination of Ms. Bhutto, who was killed during an apparent suicide bombing attack in the military garrison town of Rawalpindi, doesn't directly threaten oil supplies, it adds to global instability and a confluence of factors holding up crude oil in thin post-Christmas trading. Crude prices were buoyed Wednesday by Turkish air strikes against Kurdish rebels in northern Iraq.

"Bhutto's death is certainly no incentive to sell, and adds to a number of bullish factors at the moment, including northern Iraq and a lower dollar," said one New York trader who declined to be named.