The dollar strengthened Monday after plunging Friday after U.S. data showed the biggest jump in the unemployment rate for 22 years, denting expectations the Federal Reserve would raise interest rates.
Skyrocketing fuel costs have already begun to erode demand in consuming nations such as the United States and Britain, and moves by emerging economies like India and Malaysia to cut fuel subsidies could also dent demand, analysts warn.
Ministers from oil cartel OPEC insist there is enough in the market, and blame rising prices on speculators.
Saudi Arabia Oil Minister Ali al-Naimi said at the weekend the current price rise was unjustified, the official Saudi Press Agency reported.
The Cabinet of the top oil exporter said on Monday it will call for a meeting between producing and consuming nations to discuss prices.
High oil prices have sparked protests around the globe, from the United States to Europe to India and Indonesia.
OPEC President Chakib Khelil Monday said that but for the weak dollar, political tensions and speculation, oil prices would probably be around $70 a barrel.
"In terms of fundamentals, there is no problem of supply and demand. There is much more a bubble due to speculation, which is based on a depreciating dollar and geopolitical tensions," Khelil was quoted by Algerian official news agency APS as saying.