Oil hits 3-month high above US$82 on weak dollar

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VOV News English - 48 month(s) ago 2 readings

Oil hits 3-month high above US$82 on weak dollar

Oil prices rose for a fourth day to fresh three-month highs above US$82 per barrel on Tuesday, supported by a weaker dollar and expectations of a drawdown in US crude stocks. US September crude futures rose 95 cents to US$82.29 by 2:09 p.m. EDT after hitting an intraday high of US$82.64. The last time US crude traded above US$82 was on May 5. ICE Brent rose US$1.60 to US$82.42. North Sea Brent crude oil futures rose above US crude for the first time since mid June as planned summer maintenance reduced supplies from British and Norwegian oil fields. The Forties North Sea crude blend, which tends to set the price of dated Brent, drew no offers or bids on Tuesday for the first time in months due to tight supplies, traders said. US crude futures have convincingly broken out and above the US$70-$80 a barrel trading range this week, which it had been stuck in for most of the past three months. The move higher has prompted some further buying. The oil market's attention will turn to US inventories later on Tuesday, when the American Petroleum Institute publishes industry stockpile figures. Government statistics on supply and demand will follow from the US Energy Information Administration on Wednesday. Investors have focused on the dollar this week following a paper last week from St. Louis Fed President James Bullard talking up the risk of deflation. The dollar tumbled to multimonth lows against the euro on Tuesday on fears economic recovery in Europe and Asia will outpace that of the United States. A weaker dollar .DXY helps make oil imports cheaper for non US currency holders. Reuters

US September crude futures rose 95 cents to US$82.29 by 2:09 p.m. EDT after hitting an intraday high of US$82.64. The last time US crude traded above US$82 was on May 5. ICE Brent rose US$1.60 to US$82.42.

North Sea Brent crude oil futures rose above US crude for the first time since mid June as planned summer maintenance reduced supplies from British and Norwegian oil fields. The Forties North Sea crude blend, which tends to set the price of dated Brent, drew no offers or bids on Tuesday for the first time in months due to tight supplies, traders said.

US crude futures have convincingly broken out and above the US$70-$80 a barrel trading range this week, which it had been stuck in for most of the past three months. The move higher has prompted some further buying.

The oil market's attention will turn to US inventories later on Tuesday, when the American Petroleum Institute publishes industry stockpile figures. Government statistics on supply and demand will follow from the US Energy Information Administration on Wednesday.

Investors have focused on the dollar this week following a paper last week from St. Louis Fed President James Bullard talking up the risk of deflation. The dollar tumbled to multimonth lows against the euro on Tuesday on fears economic recovery in Europe and Asia will outpace that of the United States. A weaker dollar .DXY helps make oil imports cheaper for non US currency holders.

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