NEW YORK, May 12 (Reuters) - Oil rose as much as 3 percent on Tuesday as a weak dollar lifted commodities denominated in the currency and OPEC raised slightly its forecast for world oil demand growth.
Violence in Yemen also boosted crude prices, raising concerns over the security of Middle East supplies.
The dollar fell on bond market gyrations, making oil and other commodities priced in the greenback more affordable to holders of the euro and other currencies.
The Organization of the Petroleum Exporting Countries tweaked its 2015 world oil demand growth forecast to 1.18 million barrels per day (bpd), above a previous estimate of 1.17 million.
Saudi-led air strikes aimed at Iran-allied Houthis hit on a rocket base in the Yemen capital Sanaa, killing 90 people and wounding 300 ahead of a five-day truce set to begin later Tuesday. Yemen is a marginal oil producer but its proximity to shipping lanes has raised concerns.
U.S. crude settled up $1.50, or 2.5 percent, at $60.75 a barrel.
North Sea Brent, a more widely used benchmark for oil, settled up $1.95, or 3 percent, at $66.86.
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