Crude Futures Rise on Weaker Dollar as Inventories Drop Again
Crude futures rose for a second day as the U.S. dollar weakened to a four-month low, boosting oil’s investment appeal, while inventories fell again.
Gains for New York-traded oil futures lagged behind Brent after U.S. refineries reduced their crude use by the most in almost four months.
Oil has rebounded from a six-year low in March as U.S. companies cut the number of active rigs to the fewest since September 2010, bolstering speculation that output will slow. Both OPEC and the International Energy Agency revised up demand estimates for the year.
“The oil market has been trading on the data and the dollar this week,” Rob Thummel, a managing director and portfolio manager at Tortoise Capital Advisors LLC in Leawood, Kansas, who helps manage $16.9 billion, said by phone. “As the dollar has weakened, you’ve seen the oil market react as you would expect.”
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