Numerical simulation of atmospheric flows requires high-resolution, nonoscillatory algorithms to accurately capture all length scales. In this paper, a conservative finite-difference algorithm is proposed that uses the weighted essentially nonoscillatory and compact-reconstruction weighted essentially nonoscillatory schemes for spatial discretization. These schemes use solution-dependent interpolation stencils to yield high-order accurate nonoscillatory solutions to hyperbolic conservation laws. The Euler equations in their fundamental form (conservation of mass, momentum, and energy) are solved, thus avoiding approximations and simplifications. A well-balanced formulation of the finite-difference algorithm is proposed that preserves hydrostatically balanced equilibria to round-off errors. The algorithm is verified for benchmark atmospheric flow problems.