Oil prices rise past $80 a barrel as dollar drops

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Oil prices have risen as Greece took new steps to reduce spending and contain its economic crisis, boosting the euro against the dollar.

A weaker dollar makes oil - which is priced in the US currency - cheaper for buyers in other currencies.

US light crude climbed to $80.09 a barrel, up 0.4%. London Brent crude also rose 0.4% to $78.50 a barrel.

"We're in an upwards trend but it has limited potential," said Nick McGregor from Redmayne Bentley stockbrokers.

"I think we'll see resistance around $88-$90 a barrel."

Weekly US inventory figures due later will give a snapshot of stockpiles of crude oil, distillates and petrol, indicating whether demand is rising or falling.

Also, Royal Dutch Shell reported that an explosion damaged an oil flow station in Nigeria, further adding to market jitters.

Militants in the oil-rich Niger Delta have attacked pipelines and kidnapped oil company staff since 2006.