* Crude extends rally into 4th straight session
* Renewed QE focus keeps dollar on defensive
* Cold spell in U.S., Europe offers price support
(Updates with prices, dollar, forecasts)
SINGAPORE, Dec 6 (Reuters) - Oil extended its rally into a
fourth straight session on Monday to a 25-month high as the
dollar continued to languish, nursing losses from
weaker-than-expected U.S jobs data and a renewed focus on
quantitative easing.
The market will take trading cues from economic indicators
later this week, with the Institute for Supply Management
releasing its semi-annual economic forecast for the U.S.
manufacturing and services sectors on Tuesday.
Weekly U.S. mortgage data on Wednesday, and jobless claims
on Thursday, will also be closely watched.
"If the U.S. dollar comes under more fire, that's going to
push crude prices higher," said Peter McGuire, an independent
market strategist based in Sydney.
"I wouldn't be surprised if the $91 and $92 levels are
taken out later in the week."
U.S. crude for January <CLc1> was up 17 cents at $89.36 a
barrel by 0610 GMT, off an earlier high of $89.60, its highest
intraday since Oct. 9, 2008. The contract settled at $89.19 on
Friday, the highest close since Oct. 7, 2008.
ICE Brent for January <LCOc1> gained 18 cents to $91.60,
after settling at $91.80 on Friday, just shy of a two-year
high of $91.85 reached earlier.
Data on Friday showing the U.S. economy added fewer jobs
than expected in November, driving the jobless rate to a
seven-month peak, which weighed on the greenback and boosted
crude. []
Putting the dollar further on the defensive, Fed Chairman
Ben Bernanke said in a television programme later that the
central bank could end up buying more than the $600 billion in
U.S. government bonds it has committed to purchase if the
economy failed to respond or unemployment stayed too high.
Oil and dollar-denominated commodities often move
inversely to the dollar. A weaker dollar typically lifts oil
prices as it lowers the value of greenbacks paid to producers,
while making it less expensive for oil consumers using other
currencies.
The dollar on Monday pulled back from a three-week low
against the yen and two-week lows against the euro set on
Friday, helped by short covering. It rose 0.5 percent to 82.93
yen , climbing off Friday's three-week low of 82.52 yen,
gaining 0.4 percent on the index.
Also offering price support were plunging temperatures in
Europe and colder weather in parts of the United States, which
spurred demand for heating oil and other heating fuels.
The U.S. National Weather Service, in its eight to 14-day
outlook issued on Thursday, called for below-normal
temperatures for much of the eastern half of the country,
which includes the world's largest regional market for heating
oil.
The outlook remains bullish for next year, with at least
five banks raising their price outlook due to tighter supplies.
ING analysts forecast that oil may trade in a higher range
between $80 and $100 a barrel going forward, while JP Morgan
analysts predicted NYMEX crude was likely to average $93 a
barrel next year.
Goldman Sachs kept its call for $100 a barrel average
NYMEX oil prices next year, and lifted its crude price outlook
to an average of $110 a barrel in 2012. []
(Editing by Michael Urquhart)
