Crude oil rose in New York after an industry report showed U.S. stockpiles declined and the dollar dropped, increasing the incentive to buy commodities.
Crude inventories fell 3.14 million barrels last week, the American Petroleum Institute said late yesterday. The drop is counter to analysts’ expectations of an increase in a U.S. Energy Information Administration report due today. The dollar snapped two days of gains against the euro as the Federal Reserve will maintain interest rates to support economic growth.
“Everyone is expecting a 2 million barrel build but you’ve got API showing a 3 million barrel draw,” said Clarence Chu, a trader with options dealers Hudson Capital Energy in Singapore. “This is making people nervous but they’re waiting to see the EIA numbers to confirm. The dollar will continue to be significant in terms of moving the market.”
Crude oil for April delivery rose as much as 47 cents, or 0.6 percent, to $79.33 a barrel in electronic trading on the New York Mercantile Exchange. It was at $79.21 at 13:03 p.m. Singapore time. Yesterday, futures declined 1.6 percent to settle at $78.86.
Prices also gained today as the dollar fell against the euro. Fed Chairman Ben S. Bernanke is expected to tell Congress in testimony starting today that the U.S. Federal Reserve’s increase in discount interest rate last week won’t be a prelude to changes in the benchmark borrowing costs. The dollar traded at $1.3534 per euro at 12:47 p.m. Singapore time, from $1.3507 yesterday.....Read the entire article.
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