Oil rallied above $36 a barrel today ahead of key United States inventory data, while the dollar's weakness and a recovery in global stock markets offered support to oil prices.
Crude stockpiles in the United States likely rose last week by 3 million barrels to their highest since May 1998, a Reuters poll of analysts ahead of the U.S. Energy Information Administration (EIA) data due later today showed.
A day ahead of expiry, US crude futures for March delivery rose $1.48 cents to $36.10 a barrel by 10.50am, while April delivery contracts rose $1.47 cents to $38.88. London Brent for April delivery rose $1.31 cents to $40.86.
The American Petroleum Institute (API) said yesterday crude stocks rose last week by 1.6 million barrels, less than expected.
However, the EIA report is widely regarded as more accurate than the API's because US energy firms are required to participate.
Oil stocks in the US have risen by 20 per cent since September as the downturn has crushed consumption, and helped pull crude prices more than $110 off their peaks last summer.
World stocks rose from the previous day's three-month low yesterday as some European corporate quarterly results were better than the most pessimistic expectations, while the dollar fell, adding support to oil prices.
Reuters