Oil exceeds 80 dollars as the dollar declines after inflation data

Oil prices rose above 80 dollars a barrel on Tuesday as investors rushed to buy risky commodities after the release of US data indicating a slowdown in inflation.

The market was also supported by concerns about supply disruptions, including the continued closure of the Keystone XL oil pipeline, which transports crude from Canada to the United States following a major leak.

Brent crude futures rose 2.85 dollars, or 3.4 percent, to 80.84 dollars a barrel by 1641 GMT.

US WTI futures rose 2.49 dollars, or 3.4 percent, to 75.66 dollars.

The dollar index fell on Tuesday after data showed that core consumer price inflation in the United States rose less than expected last month, reinforcing expectations that the Federal Reserve (US central bank) will reduce the pace of interest rate hikes on Wednesday.

A weaker dollar makes oil cheaper for holders of other currencies, which should boost demand.

The market received support from the uncertainty surrounding the resumption of supplies through the Keystone pipeline of TI.Sea energy, through which about 620 thousand barrels per day of Canadian crude are shipped from Alberta to the United States, after its closure last week.

According to a preliminary Reuters poll, US crude inventories fell 3.9 million barrels last week.

Data from the American Petroleum Institute is expected to be released at 2130 GMT on Tuesday.