Crude Oil Closes above 104 Dollars

Crude-oil futures rose almost 4 dollars to close near 105 dollars a barrel Wednesday as the dollar turned lower against the euro, boosting crude's dollar-denominated prices.

Crude for May delivery gained 3.85 dollars, or 3.8 percent, to close at 104.83 dollars a barrel on the New York Mercantile Exchange.

The price jump came after a U.S. government report showed a steep draw in U.S. refined fuel inventories as the giant consumer gears up for the summer driving season.

Data from the U.S. Energy Information Administration showed gasoline inventories tumbled 4.5 million barrels against analyst calls for a 2-million-barrel fall.

The gains snapped three days of losses as Iraq began to repair an oil pipeline in the south damaged by an attack last Thursday, and came even as U.S. crude oil stocks posted their biggest weekly increase in four years.

U.S. crude inventories rose more than expected, up 7.4 million barrels to 319.2 million barrels in the week ended March 28. Analysts surveyed by energy information provider Platts expected an increase of 2.8 million barrels.

Crude oil rebounded in the afternoon after the dollar, which was trading higher against the euro earlier, turned lower. The dollar index, which tracks the value of the greenback against a basket of other currencies, fell 0.3 percent to 72.31. A weak U.S. dollar can support nominal prices for all commodities denominated in the currency.

Source: English.Cri.cn