Oil prices edge up on weak dollar

NEW YORK, May 30 (Xinhua) -- Crude futures edged up Friday as a declining U.S. dollar prompting investors to buy commodities.

Light, sweet crude for July delivery rose 73 cents to settle at127.35 dollars a barrel on the New York Mercantile Exchange (NYMEX). Oil prices, which fell by more than 4 dollars a barrel Thursday, lost 3.7 percent this week, the biggest weekly drop since March.

The dollar, which gained strongly against other major currencies Thursday, was down around 0.2 percent against the euro Friday. A 6.6 percent drop in the dollar against the euro this year has prompted investors to buy crude and other commodities as a hedge against inflation.

Crude futures were pressured following the U.S. Commodity Futures Trading Commission's Thursday announcement of a broad investigation into the potential oil market manipulation. July crude futures on NYMEX dropped to 124.67 dollars a barrel before rebounding later on Friday.

In London, Brent crude for July delivery settled at 127.78 dollars a barrel, trading up 89 cents, on the ICE Futures Exchange.