Nov. 10 (Bloomberg) -- Crude oil traded near $79 a barrel in New York after rising yesterday as the dollar weakened and Tropical Storm Ida entered the Gulf of Mexico, disrupting more than a quarter of the area’s oil and gas production.

Oil rose as much as 3.6 percent yesterday after the dollar fell against a basket of six major currencies following a decision by the Group of 20 governments to maintain economic stimulus measures. Workers were evacuated in the Gulf of Mexico and companies idled 29.6 percent of oil and 27.5 percent of natural gas output, according to government data.

“The G-20 measures and the Dollar Index around 75 provide a lot of input for crude to continue on its march higher,” said Jonathan Barratt, managing director of Commodity Broking Services Pty in Sydney. Tropical Storm Ida is “one of those supportive factors that are helping oil.”

Crude oil for December delivery traded at $79.10 a barrel, down 33 cents, in electronic trading on the New York Mercantile Exchange at 9:13 a.m. Singapore time. Yesterday, the contract rose $2, or 2.6 percent, to $79.43. Prices have gained 77 percent this year.

Rising equities also helped push energy prices higher. The Standard & Poor’s 500 Index added 2.2 percent to 1,093.08 in New York yesterday, and the Dow Jones Industrial Average increased 2 percent. Australia’s benchmark S&P/ASX 200 index gained 1.3 percent at 11:44 a.m. in Sydney.

Oil reached a one-year high of $82 on Oct. 21, as rising equities boosted investor confidence and a falling dollar encouraged buying of physical assets.

Dollar Decline

“All eyes will be focused on what happens with Dollar Index,” Barratt said. “If it breaks through that 75 area then the focus will be toward dollar weakness again.”

The Dollar Index, which tracks the dollar against currencies including the yen, pound and Swedish krona, declined 1 percent to 75.044 yesterday.

The dollar traded at $1.4989 per euro as of 9:55 a.m. in Tokyo from $1.4999 in New York yesterday, when it touched $1.5020, the lowest since Oct. 26.

Ida’s maximum sustained winds are near 70 miles (110 kilometers) per hour, the U.S. National Hurricane Center said in an advisory yesterday. Ida’s center was located about 60 miles southeast of the mouth of the Mississippi River and was moving north at 18 mph, the center said.

Chevron Corp., the second-largest U.S. oil company, said it has shut some of its Gulf output and moved away some “non- essential personnel.” BP has started “some precautionary curtailment of production,” according to a recorded statement on its hotline.

The Gulf of Mexico accounts for 27 percent of U.S. crude production and 15 percent of natural gas output.

U.S. Stockpiles

U.S. crude-oil inventories probably rose 1 million barrels in the week ended Nov. 6, according to the median of 10 estimates by analysts before an Energy Department report.

The department is scheduled to release its weekly report on Nov. 12 at 11 a.m. in Washington, a day later than usual because of the Veterans’ Day holiday on Nov. 11.

Brent crude for December settlement fell as much as 32 cents, or 0.4 percent, to $77.45 on the London-based ICE Futures Europe exchange. Prices rose $1.90, or 2.5 percent, to $77.77 a barrel yesterday.

To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net

Last Updated: November 9, 2009 20:34 EST