| Crude oil climbed from a five-month low in New York as the approach of Hurricane Ike delayed the restoration of output in the Gulf of Mexico and the dollar's rally stalled. Gold and wheat advanced.
Oil gained for the first time in seven sessions as producers evacuated workers from platforms in the gulf or kept on shore staff drawn from the path of Hurricane Gustav last month. Prices also rose after the U.S. government's seizure of Fannie Mae and Freddie Mac, backers of about half the nation's home-loans, slowed a rally in the dollar.
''We're talking about another two to three weeks of limited production in the Gulf,'' Stephen Schork, president of Schork Group Inc., said in a Bloomberg television interview. ''There is an inextricable link between the dollar and crude oil'' and commodities in general, he said.
Commodities including oil and copper reached records this year as demand increased and strikes and droughts limited production. The falling U.S. dollar also prompted investors to buy platinum and gold as hedges against inflation.
The dollar bottomed in July. The Standard & Poor's GSCI gauge of 24 commodity futures fell the past six sessions and is down 27 percent from its July a record, signaling a bear market.
The U.S. currency lost 0.6 percent in an index against six other major currencies at 9:51 a.m. in Tokyo, the first decline in eight sessions. It was at $1.4355 against the euro and 108.48 to the yen, from $1.4267 and 107.73 late in New York Sept. 5.
Commodities Gain
''Hopefully, we'll start to see the dollar rebound again'' once investors have digested the rescue package for the U.S. mortgage market, Schork said. ''As long as the dollar continues to move up, crude and commodities in general will continue to move lower.''
Crude oil for October delivery climbed as much as $2.68, or 2.5 percent, to $108.91 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $108.80 at 9:56 a.m. in Tokyo.
The contract fell $1.66, or 1.5 percent, to $106.23 on Sept. 5, the lowest close since April 4 and its sixth straight decline. Oil fell 8 percent last week as Hurricane Gustav passed west of New Orleans with less strength than earlier forecast and the euro dropped against the U.S. currency, reducing the appeal of dollar- priced commodities.
Gold for December delivery rose $16.10, or 2 percent, to $818.90 an ounce on the Comex division of the New York Mercantile Exchange. The contract fell the previous five sessions.
Copper, Wheat Up
Copper for December delivery gained 5.4 cents, or 1.8 percent, to $3.1530 a pound. The metal used in plumbing and electrical wiring dropped 8.5 percent last week, as inventories monitored by the London Metal Exchange climbed to their highest since Jan. 8.
Wheat for December delivery climbed from a three-month low, gaining 8.25 cents, or 1.1 percent, to $7.5975 a bushel on the Chicago Board of Trade. Prices fell 6.2 percent last week after plunging 10 percent in the previous week.
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