Oil Rises 1.9% As Dollar's Drop Boosts Appeal (Investor's Business Daily)

Crude advanced as a weaker dollar made commodities priced in the U.S. currency more attractive to investors.
Futures climbed 1.9% in New York and 1.1% in London. The dollar dropped against all but one of its 16 major counterparts, extending last week’s fall, which was the biggest in three years, as the Federal Reserve damped the outlook for higher rates. Oil slipped as much as 2.7% in New York earlier on speculation that a global supply glut will persist.
Saudi Arabia is producing almost 10 million barrels a day, Oil Minister Ali al-Naimi said on Sunday, which would be close to a record if sustained for a month.
A government report on Wednesday is projected to show that U.S. crude supplies climbed from the highest level in more than three decades, according to analysts surveyed by Bloomberg.
“As the dollar dropped, crude moved into positive territory,” Gene McGillian, a senior analyst at Tradition Energy in Stamford, Conn., said by phone. “The trend is still lower. Inventories should rise further in coming weeks which will cause crude to grind lower.”
West Texas intermediate for May delivery rose 88 cents to settle at $47.45 a barrel on the New York Mercantile Exchange. The April contract expired on Friday after advancing $1.76 to $45.72. Total volume was 37% below the 100-day average at 2:46 p.m.
Brentfor May settlement increased 60 cents to end the session at $55.92 a barrel on the London-based ICE Futures Europe exchange.