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March 11, 2015

Oil increases above $58 on weak US dollar

The price of Brent oil futures increased to above $58 a barrel on Thursday, as the US dollar dropped 0.4% against a host of currencies.

By admin-demo

The price of Brent oil futures increased to above $58 a barrel on Thursday, as the US dollar dropped 0.4% against a host of currencies.

Reuters reported that Brent rose 63 cents to $58.17, and West Texas Intermediate increased 33 cents to $48.50 a barrel.

The April contracts for Brent and WTI are due to expire next week.

"When contracts expire there is more uncertainty and volatility associated with oil."

IHS Energy vice president Victor Shum was quoted by the news agency as saying, "When contracts expire there is more uncertainty and volatility associated with oil. For investors speculating, directionally WTI seems to be facing more pressure heading down. Brent will move upwards."

Data from the US Department of Energy revealed that US crude inventories increased for the ninth straight week, gaining 4.5m barrels to a total of 448.9m.

Newedge Japan commodity sales manager Yusuke Seta said: "Oil inventories are expected to increase further."

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Analysts have said that any price gains will be for a short period of time, as oil stocks are expected to increase further due to refinery maintenance, and the dollar may continue to strengthen against the euro.

Shum said possible supply disruptions, including increasing violence in Libya, were the main strong factors for Brent.

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