Oil gave up gains to trade little changed after the dollar rose against the euro and a government report showed U.S. petroleum demand dropped to the lowest level in more than 10 months.
Futures rose as much as 0.3 percent before the U.S. currency climbed, limiting investors’ need for assets such as commodities to hedge against inflation. Crude declined 0.4 percent yesterday after the Energy Department reported fuel consumption fell 0.7 percent to 18.3 million barrels a day last week, the lowest level since November. U.S. jobless claims unexpectedly increased to 462,000 in the week to Oct. 9, a Labor Department report showed.
“It’s clear the U.S. economy is still barely holding on,” Mike Sander of Sander Capital Advisors in Seattle, said in an e- mailed note today. “Oil is still fighting resistance in the $83 price range. I see the price of oil staying between the range of $85 and $75 for the near future.”
The November contract traded at $82.62 a barrel, down 7 cents, in electronic trading on the New York Mercantile Exchange at 10:51 a.m. Sydney time. Earlier, it advanced to $82.97. Yesterday crude lost 32 cents to $82.69. Prices are up 4.1 percent this year.
The dollar increased 0.4 percent to $1.4027 per euro, from $1.4084. It touched $1.4122 yesterday, the weakest level since Jan. 26. A weaker U.S. currency increases the appeal of commodities as an alternative investment.
U.S. gasoline stockpiles decreased 1.77 million barrels to 218.2 million last week, the Energy Department said. They were forecast to slip 1.5 million barrels, according to the median of 19 analyst estimates in a Bloomberg survey before the report.
OPEC Meeting
Crude inventories dropped 416,000 barrels to 360.5 million, the report showed. Supplies were estimated to jump 1.45 million barrels, the Bloomberg News survey shows.
Representatives from Venezuela and Libya at a meeting of the Organization of Petroleum Exporting Countries in Vienna said oil at $100 a barrel would compensate producers for a slide in the dollar without derailing the global economic recovery.
Crude at $90 to $100 won’t “harm” growth, Venezuelan Energy and Oil Minister Rafael Ramirez said. Shokri Ghanem, chairman of Libya’s National Oil Corp., also called for higher prices even as other nations said they were content with levels of $70 to $85 a barrel.
OPEC, which accounts for about 40 percent of global crude supply, agreed to leave oil-production quotas unchanged and called on members to improve compliance with the group’s self- imposed production limits.
Brent crude for November settlement fell 11 cents, or 0.1 percent to $84.53 a barrel on the ICE Futures Europe exchange in London yesterday.
Futures rose as much as 0.3 percent before the U.S. currency climbed, limiting investors’ need for assets such as commodities to hedge against inflation. Crude declined 0.4 percent yesterday after the Energy Department reported fuel consumption fell 0.7 percent to 18.3 million barrels a day last week, the lowest level since November. U.S. jobless claims unexpectedly increased to 462,000 in the week to Oct. 9, a Labor Department report showed.
“It’s clear the U.S. economy is still barely holding on,” Mike Sander of Sander Capital Advisors in Seattle, said in an e- mailed note today. “Oil is still fighting resistance in the $83 price range. I see the price of oil staying between the range of $85 and $75 for the near future.”
The November contract traded at $82.62 a barrel, down 7 cents, in electronic trading on the New York Mercantile Exchange at 10:51 a.m. Sydney time. Earlier, it advanced to $82.97. Yesterday crude lost 32 cents to $82.69. Prices are up 4.1 percent this year.
The dollar increased 0.4 percent to $1.4027 per euro, from $1.4084. It touched $1.4122 yesterday, the weakest level since Jan. 26. A weaker U.S. currency increases the appeal of commodities as an alternative investment.
U.S. gasoline stockpiles decreased 1.77 million barrels to 218.2 million last week, the Energy Department said. They were forecast to slip 1.5 million barrels, according to the median of 19 analyst estimates in a Bloomberg survey before the report.
OPEC Meeting
Crude inventories dropped 416,000 barrels to 360.5 million, the report showed. Supplies were estimated to jump 1.45 million barrels, the Bloomberg News survey shows.
Representatives from Venezuela and Libya at a meeting of the Organization of Petroleum Exporting Countries in Vienna said oil at $100 a barrel would compensate producers for a slide in the dollar without derailing the global economic recovery.
Crude at $90 to $100 won’t “harm” growth, Venezuelan Energy and Oil Minister Rafael Ramirez said. Shokri Ghanem, chairman of Libya’s National Oil Corp., also called for higher prices even as other nations said they were content with levels of $70 to $85 a barrel.
OPEC, which accounts for about 40 percent of global crude supply, agreed to leave oil-production quotas unchanged and called on members to improve compliance with the group’s self- imposed production limits.
Brent crude for November settlement fell 11 cents, or 0.1 percent to $84.53 a barrel on the ICE Futures Europe exchange in London yesterday.
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