BANGKOK – The price of oil rose Wednesday, boosted by a slip in the dollar and expectations that crude stockpiles fell late last month.
Benchmark oil for July delivery was up 33 cents to US$93.64 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The price fell 14 cents to finish at $93.31 a barrel on the Nymex on Tuesday.
U.S. Energy Department data for the week ending May 31 is expected to show a decline of 1 million barrels in crude oil stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill.
Tighter supplies push oil prices higher, as does the U.S. dollar when it softens against other major currencies. The dollar’s decline makes oil more appealing for investors with other currencies because it is priced in dollars.
Overall, however, oil has moved sideways over the past year, trading within a range of $88 to $96 per barrel, Carl Larry of Oil Outlooks and Opinions said.
“There’s been movement beyond that range, but the way big money makes money bigger is that they catch trends. With this limited range, there is no trend,” Larry said in a market commentary.
Brent crude, a benchmark for many international oil varieties, rose 2 cents to $103.26 a barrel on the ICE Futures exchange in London.
In other energy futures trading on the New York Mercantile Exchange:
— Wholesale gasoline added 0.5 cent to $2.824 a gallon.
— Heating oil rose 0.5 cent to $2.87 per gallon.
— Natural gas rose 0.9 cent to $4.007 per 1,000 cubic feet.
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