Oil steadied after hitting a new high near $106 on Thursday as a weak dollar helped prices to extend the previous day's gains prompted by a drop in U.S. oil inventories and OPEC's decision to keep output unchanged.
"The crude squeeze continues. The sharp rise in crude was exacerbated by a weak U.S. dollar, OPEC's decision to stand still," Citigroup said in a research note.
The dollar fell to a record low against the Swiss franc and hit a fresh trough against the euro on Thursday.
On Wednesday, U.S. crude had settled $5.00 higher after U.S. Energy Information Administration data showed a 3.1 million barrel drop in crude stockpiles, against analysts' forecast for an increase.
Distillate inventories, including heating oil, fell 4.8 million barrels, dropping for the fourth consecutive week as colder weather boosted heating demand in the U.S. Northeast.
Gasoline stockpiles rose again to another 14-year high.
Citigroup said that U.S. crude and product stocks altogether fell 4.5 million barrels, while a seasonal norm for this time of the year was a 3.3 million barrel drop.
No comments:
Post a Comment