LONDON: Crude oil dipped 17 cents in the Asian session on Wednesday to trade at 56.89 and Brent oil mirrored the decline to reach 64.47. The weekly American Petroleum Institute report showed a higher than expected climb in stores. Brent crude futures reversed early losses to hold steady on Tuesday as a weaker dollar offset expectations that weekly US crude inventory data will show another record build.
The dollar was down 0.31 per cent against a basket of currencies, helping to curb Brent’s losses. A weaker greenback makes dollar-priced commodities more attractive for holders of other currencies.
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US commercial crude stockpiles were expected to have risen last week for the 16th straight week, up from a record 489 million barrels, even though drilling activity fell, a preliminary survey by Reuters showed on Monday.
Brent crude hit a 4-1/2 month high of $65.80 a barrel last week, while West Texas Intermediate (WTI) has risen for six consecutive weeks, underpinned by net long positions on both contracts as speculators bet on a decline in U.S. shale output.
