Oil prices gain on weaker dollar

As the US economy slows, so could demand for oil

Oil prices recovered on Tuesday after dipping below $100 a barrel, helped by a weaker dollar.

US light sweet crude closed 36 cents higher at $101.22 a barrel after falling as low as $99.40 early on.

Oil prices were boosted by the weaker dollar, as investors switch money into commodities when the US currency falls.

It is the first rise for crude oil prices in four sessions. Prices have fallen more than $10 a barrel since last week's record.

There is concern that the slowing US economy will hit demand for oil.

"There is a realisation in the market that the fundamentals really don't justify prices to be so far above $100," said Gerard Burg, a resource analyst at the National Australia Bank.