Oil Tiptoes Higher On Dollar, Supply Data

Oil futures inched higher in electronic trade Thursday on the back of slightly weaker dollar and a smaller-than-expected rise in U.S. crude supplies.

Benchmark U.S. crude-oil futures for December delivery  edged 6 cents, or 0.1%, higher to $93.94 a barrel, adding to a 0.9% advance a day earlier on the New York Mercantile Exchange.

December Brent crude   also gained ground, adding 16 cents, or 0.2%, to $107.28 a barrel.

Helping the contracts move higher was a modest dip in the U.S. dollar, with the ICE dollar index  easing to 80.908 from late Wednesday’s 80.938. Gains for the U.S. unit can weigh on dollar-denominated oil by making it more expensive to holders of other currencies.

In addition to a falling dollar, ICICI Bank said “prices also remained supported as continued protests in Libya weighed on the oil supply outlook.”

Likewise, weekly U.S. supply data from the American Petroleum Institute said crude stocks rose about 600,000 barrels in the week ended Nov. 8, according to data from sources. The result was below an expected 1.8 million barrel gain, according to a Platts survey of energy analysts.

The more closely watched Energy Information Administration weekly supply report was due out later Thursday, delayed by a day because of the Veterans Day holiday.

In other energy-futures trading Thursday, December gasoline  improved by 2 cents, for a 0.8% rise to $2.65 a gallon, while December heating oil  traded flat at $2.90 a gallon.

December natural gas  fell 2 cents, or 0.5%, to $3.55 per million British thermal units, extending a 1.4% loss Wednesday.

Source : Marketwatch