Oil Rises on Weak USD and Lower Inventories

Oil rose 2 percent on Thursday, heading for its largest weekly gain in a month, after a surprisingly large drop in U.S. crude inventories emboldened investors ahead of next week’s meeting between OPEC members and Russia to discuss supply.

A fall in the dollar against a basket of currencies .DXY to a two-week low further underpinned the market.

Brent crude futures LCOc1 rose 95 cents to $47.78 a barrel by 1345 GMT, up 4.3 percent so far this week and set for the largest one-week rise since mid-August. U.S. oil futures CLc1 rose $1.09 to $46.43 a barrel.

The U.S. Energy Information Administration on Wednesday reported a 6.2-million-barrel drop in crude oil inventories last week, the second-biggest fall in a year. [EIA/S]

The drawdown, along with a more benign outlook for U.S. monetary policy, overshadowed news that Russian oil output hit a new record above 11 million barrels per day this week and that Libya had exported its first oil cargo since at least 2014 from the port of Ras Lanuf.

via Reuters

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