The euro extended this week’s increase against the dollar before a US report that economists said will show the world’s largest economy shrank at a slower rate last quarter, spurring demand for higher-yielding assets. OPEC member nations are deepening their production cuts to support prices. An Energy Department report today will most likely show US stockpiles gained.
“Oil is holding around $50 despite expectations for another crude stock build today,” said Christopher Bellew, senior broker at Bache Commodities Ltd. “The weaker dollar must help a bit, but I suspect that people are filling inventories because of the low cost of borrowing.”
An Energy Department report later today will probably show that U.S. crude oil stockpiles rose by 1.8 million barrels last week, according to the median of 14 analyst responses in a Bloomberg News survey. Supplies climbed to 370.6 million barrels in the week ended April 17, the highest since September 1990.
The API report, released after the end of floor trading of April 28, 2009, showed supplies rose to 374.8 million last week.
Brent crude for June 2009 settlement was at $50.25 a barrel, up 26 cents, at 8:48 a.m. London time on London’s ICE Futures Europe exchange. The contract earlier dropped as much as 74 cents, or 1.5%, to $49.25 a barrel.
