Oil Rebounds From Biggest Drop in Three Months on Supply
Oil traded near its lowest closing price in three days before a weekly report on supply and demand levels in the U.S., erasing earlier gains as the dollar strengthened.
West Texas Intermediate was little changed, having given up an increase of as much as 0.7 percent. A stronger dollar typically undermines investors’ appetite to protect against inflation through purchasing commodities. The Energy Department may say today that stockpiles climbed 2.2 million barrels, a Bloomberg News survey showed. Saudi Arabia can increase output by 25 percent immediately, Oil Minister Ali al-Naimi said yesterday.
Crude for May delivery was at $106.20 a barrel on the New York Mercantile Exchange at 12:54 p.m. London time. The contract dropped $2.49 yesterday to $106.07, the lowest close since March 15. The euro erased gains against the dollar to trade at $1.3222 in New York. The 17-nation currency reached an almost two-week high earlier. The Dollar Index (DXY), which tracks the U.S. currency against those of six trading partners, climbed as much as 0.2 percent after declining 0.4 percent earlier today.
-- Editor: John Buckley
To contact the reporters on this story: Grant Smith in London at gsmith52@bloomberg.net
To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net
March 21 (Bloomberg) -- Sarah Quinlan, founder of QAM, talks about global market risks and the outlook for oil. Quinlan speaks with Stephanie Ruhle on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
March 21 (Bloomberg) -- Bob McNally, president and founder of Rapidan Group LLC, talks about Saudi Arabia's oil production and the outlook for oil prices. Saudi Arabia can increase crude production by as much as 25 percent immediately if needed, the country’s oil minister said, seeking to allay the concern over supplies that has driven prices to the highest in three years. McNally speaks with Erik Schatzker on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
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