Forex Pros – Crude oil futures were up for a third day on Thursday, hitting a two-week high as prices were boosted by a softer U.S. dollar and indications of strong fuel demand in the U.S.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD101.45 a barrel during European morning trade, gaining 0.38%.
It earlier rose as much as 0.8% to USD101.90 a barrel, the highest price since May 11.
Government data released on Wednesday showed that total U.S. fuel supplies fell by 2.04 million barrels last week to 141.1 million, the lowest level since April 2009. Analysts had expected U.S. fuel supplies to rise by 0.1 million barrels.
Total fuel consumption rose 2.2% to 18.9 million barrels a day, the highest since the week ended April 15.
The unexpected drop in U.S. fuel stockpiles overshadowed gains in gasoline and crude inventories, as the official start of the U.S. summer driving season was to begin this weekend.
Total U.S. crude oil inventories rose by 0.6 million barrels, confounding expectations for a drawdown of 1.6 million barrels, while gasoline supplies increased 3.8 million barrels, surpassing expectations for a gain of 0.4 million.
Crude also gained as the dollar declined, making commodities more attractive as an alternative investment. The dollar index was down 0.44% to hit 75.67, after earlier dropping to a one-week low of 75.58.
Meanwhile, global financial service provider Societe Generale said that oil may rise to USD106 a barrel in the coming weeks as prices mirror an early-May pullback in 2010 that launched a rally during the rest of that year.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery added 0.1% to trade at USD114.86 a barrel, up USD13.41 on its U.S. counterpart.
ForexPros.com
