Crude oil fluctuated

Crude oil fluctuated, recovering from losses after non-violation of technical support near $ 80 a barrel, the dollar strengthened on concern that the debt crisis of Europe, will affect economic growth.

Oil hit $ 80.28 as the dollar gained the most since August, curb appeal commodities as an alternative investment. The operators asked the U.S. currency as a refuge for the crisis in Europe and then North Korea and South exchanged gunfire. U.S. probably report tomorrow that oil supplies fell last week for the third time in a row.

"There is a defense of the $ 80 mark going," said Tim Evans, energy analyst at Citi Futures Perspective in New York. "The difficulty is that the bulls argued that inventory changes were irrelevant for months to argue that an expected decline in oil inventories makes a business."

Crude for January delivery fell 1 cent to $ 81.73 a barrel at 13:32 in the New York Mercantile Exchange. Prices have risen by 5.4 percent last year. Brent crude oil for January settlement fell 23 cents, or 0.3 percent, to $ 83.73 a barrel on London's ICE Futures exchange in Europe.

The dollar advanced as the crossfire of Korea increased the demand for safer assets. Climbed 1.7 percent to $ 1.3394 per euro in New York in the largest increase in one day since Aug. 11.

Oil Supply

U.S. crude inventories probably decreased by 2 million barrels, or 0.6 percent, last week at 357.6 million the previous week, according to the median of 14 analyst estimates before a future report of the Department of Energy.

The Energy Department plans to release its weekly report on petroleum inventories at 10:30 am tomorrow in Washington. The industry-funded American Petroleum Institute is due to publish its data later today.

The U.S. economy grew at a rate of 2.5 percent in the third quarter, more than estimated, as companies increased shipments abroad and Americans increased their spending, the Commerce Department figures showed today in Washington.

South Korean fighter jets scrambled and returned fire nuclear weapons after North Korea fired dozens of missiles on its territory, injuring 14 soldiers, according to government reports and YTN.

A South Korean Defense Ministry official, who requested anonymity, confirmed the bombing. The military has been put on high alert and "respond forcefully" to the provocation, he said.

'Contagion' European

German Chancellor Angela Merkel said the euro is in an "exceptionally serious" situation in Ireland on the verge of becoming the second European country to need a bailout, after Greece.

European Union officials estimate that a rescue package for Ireland can be up to about 85 million euros (114 billion U.S. dollars) according to two officials familiar with the negotiations who spoke on condition of anonymity because the talks were private.

The bond yields rose Spanish and Portuguese, as the rescue of Ireland risked escalating the crisis in Europe to the southern European nations with large budget deficits. Spain 10-year yield spread over German bunds widened to a record euro era.

"The market is concerned about the European contagion goes along with Portugal and Spain, probably the death knell," said Stephen Schork, president of the consulting firm Schork Group Inc. in Villanova, Pennsylvania.