* Iran says talks on nuclear fuel swap continue
* Dollar slips against euro
* Commodities gain on greenback weakness
(Recasts, updates throughout, changes dateline from LONDON
previous, new byline)
By Rebekah Kebede
NEW YORK, Feb 16 (Reuters) - Oil prices jumped more than 3
percent to a session high of about $77 on Tuesday, responding
to a weaker U.S. dollar, stronger equities, and growing
tensions over sanctions against Iran.
U.S. crude for March delivery <CLc1> rose $2.87 to $77 a
barrel by 12:29 p.m. EST (1729 GMT).
The benchmark Brent contract for April delivery <LCOc1>
rose $3.19 to $75.70 a barrel.
Trading volumes were light with much of Asia shut for the
Lunar New Year holiday and U.S. markets opening after Monday's
closure for Presidents' Day. There was no settlement price on
Monday as floor activity on the New York Mercantile Exchange
was closed.
"The oil market is reacting to the dollar being weak and
that is a big part of why crude futures are higher today," Phil
Flynn, analyst, PFGBest Research, Chicago.
"At the same time, we are seeing prices of other
commodities such as gold, silver and copper rise sharply.
Trading volume is light at this point and that is making price
moves faster than they would be if volumes were heavier," he
said.
The U.S. dollar slipped against the euro on Tuesday as some
traders felt the European currency had dropped too far in
recent weeks over concerns about the Greek economy.[]
A strong dollar tends to pressure dollar-priced commodities
as they become more expensive for holders of other currencies.
Wall Street stock indexes were lifted by commodity-related
shares and by a rise in New York state's manufacturing index
which rose more than expected in February.
Expectations of an economic recovery have supported oil
prices, which have traded in a relatively tight $15 range
between $69 and $84 a barrel since the beginning of October.
Prices had climbed to a record above $147 a barrel in July
2008 to less than $33 at the end of that year.
GEOPOLITICAL TENSIONS
Iran's President Mahmoud Ahmadinejad said, talks were still
going on over a proposed nuclear fuel swap and any country that
tried to impose new sanctions on Iran would regret its
actions.
U.S. Secretary of State Hillary Clinton has sought backing
from oil giant Saudi Arabia to help win Chinese support for
additional sanctions targeting Iran's Revolutionary Guard.[]
In Nigeria, Acting President Goodluck Jonathan is looking
for swift progress reviving an amnesty program in the
oil-producing Niger Delta where years of attacks by militants
have disrupted supplies. []
U.S. oil inventory reports will be published a day later
than usual this week because of Monday's holiday. The American
Petroleum Institute will release statistics collated from
industry sources on Wednesday, followed by government data from
the Energy Information Administration on Thursday.
(Additional reporting by Jo Winterbottom in London, Alejandro
Barbajosa in Singapore; editing by Carole Vaporean)
