Brent crude rose today and regained its position from its biggest fall in almost a month the day before, after a drop in the dollar as the Federal Reserve is likely to maintain stimulus measures for now.
Brent crude jumped by 16 cents to $102.59 a barrel, while US oil slipped by three cents to $93.10, reported Reuters.
Oil prices got a boost after the dollar dropped, which makes commodities priced in the greenback cheaper for holders of other currencies.
Investors are now keeping a close watch on the data from the US Energy Information Administration (EIA) later, slated to be released on Thursday, to get better indication on the outlook for demand from the top oil consumer.
On Wednesday, the American Petroleum Institute released its report, which showed a 4.4 million barrel rise in US crude inventories for the week to 24 May, which was much higher than Reuters prediction for a drop of 400,000 barrels.
On the other hand, a Reuters survey showed that China’s PMI reduced to 50.1 in May from April’s 50.6, sparking apprehensions that the world’s second largest oil consumer is losing steam.
The Organization of the Petroleum Exporting Countries (OPEC) is expected to keep its output policy on a steady course for 2013, and maintain it at 30 million barrels per day.
OPEC’s top oil producer, Saudi Arabia, has already prepared for a swift and easy deal when oil ministers conduct a meeting on Friday.
Image: Brent got boost after the dollar dropped as the Federal Reserve is likely to maintain stimulus measures for now. Photo courtesy of freedigitalphotos.