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UPDATE 6-Oil pulls back on U.S. stock build, dollar's rise
March 14, 2012 / 4:57 AM / 6 years ago

UPDATE 6-Oil pulls back on U.S. stock build, dollar's rise

* Brent premium versus U.S. crude hits $20
    * U.S. crude at Cushing hub at 9-month high
    * Brighter U.S. Fed outlook lifts dollar
    * Brent at near all-time peak in euro terms

    By Gene Ramos	
    NEW YORK, March 14 (Reuters) - Crude oil futures fell
back on Wednesday as U.S. crude stockpiles rose last week for
the fourth time in a row and the dollar gained, tempering
investor appetite for riskier assets such as oil and industrial
    Crude stocks stored at the U.S. delivery hub in Cushing,
Oklahoma, surged 2.5 million barrels to reach a nine-month high
38.7 million barrels, U.S. government data showed. Inventories
there have risen for eight straight weeks, amassing the biggest
eight-week gain since January 2009.  	
    In total, U.S. crude stockpiles increased 1.8 million
barrels nationally, to 347.5 million barrels, in line with the
forecast in a Reuters poll.
    "The build in Cushing stocks has widened Brent's premium to 
$20 and you're seeing the strength in the dollar discourage
buying of riskier assets," said Hamza Khan, analyst at the
Schork Group in Villanova, Pennsylvania.	
     By 12:10 a.m. EDT (1710 GMT), ICE Brent crude for April
delivery traded in London at $125.90 a barrel, down 32
cents. It settled at $126.22 on Tuesday, the highest close for
front-month Brent since April 8, 2011.
     U.S. April crude was down 68 cents at $106.03.	
     Brent's premium against U.S. crude stood at around $19.90,
after closing at $19.51 on Tuesday. It posted at a
range of $19.21 to $20.01.   	
     The dollar was up 0.50 percent against a basket of
currencies, hitting an 11-month high against the yen. The
greenback strengthened after the U.S. Federal Reserve, in a
statement issued on Tuesday following a policy meeting, painted
a moderately brighter outlook for the U.S. economy. 	
    Gains in the dollar can pressure dollar-denominated
commodities by making them more expensive to consumers using
other currencies.	
    In euro terms Brent crude oil was just below all-time highs
set the previous session, piling pressure on a fragile economic
recovery in Europe, which is lagging the United States and Asia.

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