Oil reverses course and rises as dollar backs off highs

OPEC's widened tent would still be built on desert sand

Is the era of rising oil prices already over?

The price for Brent crude oil, the global benchmark for the price of oil, was down 0.46 percent as of 9:18 a.m. EST to $64.95 per barrel.

USA crude oil production surpassed 10 million barrels per day (bpd) in November for the first time since 1970.

Since the dollar began to grind higher a few weeks ago, the oil price has lost almost 10 per cent since hitting a multi-year high above $70 in January.

The U.S. supply data is expected to be released this Wednesday; the information is expected to be released by the U.S. Energy Information Administration after having tons of delay in the past couple of days.

"Oil is getting support from a rebound in global stock markets and a weak dollar, but the upside is limited due to a projection for rising USA production", Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo, told Reuters.

West Texas Intermediate for April delivery fell as much as 93 cents to $60.75 a barrel on the New York Mercantile Exchange and traded at $61.03 at 09:12. "The market's been concerned about US production ramping, so as long as you still have these healthy inventory reports, it helps ease some of the fears".

The firm dollar outweighed a reported fall in US crude inventories. New federal data are published Thursday, delayed one day by the federal holiday Monday in the United States.

Oil gained some support from a rise on Wall Street markets.

Opec has "taken a lot of production off the table, but it's just being replaced by US production to a large degree", said Bob Yawger, director of the futures division at Mizuho Securities USA Inc in NY.

Most of OPEC and roughly non-OPEC producers led by Russian Federation cut production by 1.8 million barrels per day (MMBPD) beginning January 1, 2017, to prop up prices.

Crude oil futures were lower in early European trading Thursday amid pressure from a firmer dollar and as markets appeared to shrug off initial data showing a drawdown in USA stocks.

The American Petroleum Institute will release its weekly oil and petro stokpiles report this afternoon, a day behing schedule due to the President Day break.

Nationwide stockpiles are forecast to have risen by 2.9 million barrels last week.

Moreover, traders say onshore tanks in the region are also not booked out any more, in stark contrast to 2016/17: Oystein Berentsen, director for crude trading at Strong Petroleum, noted, "Most of the contango stocks afloat are sold.floating storage is no longer economical".

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