NEW YORK (CNNMoney.com) -- Oil prices climbed Tuesday on a weaker dollar and as investor optimism about the economic recovery boosted fuel demand.
What prices are doing: Light, sweet crude oil for April delivery gained 98 cents, or more than 1%, to settle at $79.68 a barrel, after jumping to a high of $80.95 earlier in the session.
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| Click on the chart to view oil prices. |
Oil retreated Monday as the dollar strengthened and investors focused on a weaker-than-expected manufacturing report.
What's driving prices: Prices followed stocks higher Tuesday amid expectations that a rescue package for Greece is near.
Crude was also boosted by a weaker dollar, which fell against the euro and the yen. Oil and other commodities that are priced in dollars often rise when the U.S. currency weakens.
Meanwhile, investors were looking ahead to the Energy Information Administration's weekly inventory report due Wednesday morning.
Analysts expect a 1.1 million barrel rise in crude supplies, a 160,000 barrel jump in gasoline stocks and a 975,000 barrel drop in distillate inventory, according to a survey conducted by research firm Platts.
What analysts are saying: "Equities have been stronger as of late, and that's always going to boost prices," said Chris Lafakis, an associate economist at Moody's Economy.com.
"Investor sentiment is so important, and the expectation that the global economy is going to do better will result in stronger demand for petroleum products like gasoline," he said.
Crude oil, which is used to produce gasoline, will be lifted by this increased demand for gasoline, said Lafakis.
He said prices are likely to remain relatively stable this year, with an estimated high of $83 a barrel.
In 2011, prices could climb to $90 a barrel as the economic recovery "really kicks in," he said. 
| Overnight Avg Rate | Latest | Change | Last Week |
|---|---|---|---|
| 30 yr fixed | 3.80% | 3.80% | |
| 15 yr fixed | 3.09% | 3.11% | |
| 5/1 ARM | 2.65% | 2.69% | |
| 30 yr refi | 3.77% | 3.86% | |
| 15 yr refi | 3.09% | 3.21% |
Today's featured rates:
| Index | Last | Change | % Change |
|---|---|---|---|
| Dow | 12,454.83 | -74.92 | -0.60% |
| Nasdaq | 2,837.53 | -1.85 | -0.07% |
| S&P 500 | 1,317.82 | -2.86 | -0.22% |
| Treasuries | 1.74 | -0.01 | -0.80% |
| Company | Price | Change | % Change |
|---|---|---|---|
| Bank of America Corp... | 7.15 | 0.01 | 0.14% |
| Sprint Nextel Corp | 2.62 | 0.09 | 3.56% |
| Cisco Systems Inc | 16.33 | -0.06 | -0.37% |
| Chesapeake Energy Co... | 15.81 | 0.23 | 1.48% |
| Ford Motor Co | 10.60 | 0.01 | 0.09% |
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