World oil prices advanced above $72 a barrel in Asian trade Thursday as dollar eased while OPEC decides to keep output unchanged.
World oil prices advanced above $72 a barrel in Asian trade Thursday as dollar eased while OPEC decides to keep output unchanged. Light sweet crude for October delivery was seen trading at $72.15 a barrel at 1.00 p.m Singapore time while Brent crude was at $70.39 a barrel at the same time.
On Wednesday, oil rose for a fourth day to close at $71.31 a barrel in New York as the falling dollar spurred investors to buy commodities as a counter against inflation and an industry report showed a decline in U.S. inventories.
Brent crude settled at $69.83 a barrel Wednesday, gained 41 cents, or 0.6 percent.
Oil also gained after OPEC agreed to maintain output targets. The dollar, as measured against the currencies of six major trading partners, has dropped 14 percent since March.
The Vienna based oil cartel agreed Wednesday to maintain production quotas at 24.845 million barrels a day, and will urge members to adhere to their targets.
The American Petroleum Institute reported U.S. stockpiles declined 7.22 million barrels, the biggest drop since Sept. 5, 2008.
The dollar traded near the lowest level since December against the euro. The dollar was at $1.4575 per euro, after reaching $1.4601 Wednesday, the weakest level since Dec. 18.