US Crude Oil Surges 2% On Weak Dollar, Technical Trade
NEW YORK, April 8 (Reuters) - U.S. crude oil prices rose more than 2 percent on Tuesday in a technical-driven rally boosted by a weaker U.S. dollar and forecasts for a draw on stockpiles of domestic oil products.
Fresh unrest in eastern Ukraine provided background support for Brent as traders worried that heightened tensions between Moscow and the Western powers might interrupt oil supply from Russia, one of the world's top oil exporters.
The U.S. Energy Information Administration said on Tuesday it did not assume that a disruption of oil supply or demand would result from the events in Ukraine.
The U.S. dollar fell to near three-week lows against a basket of six major currencies on Tuesday, which boosted buying of dollar-priced commodities such as oil.
U.S. commercial crude stocks rose last week by 7.1 million barrels, much more than expected, according to preliminary data released by the industry group the American Petroleum Institute. A preliminary poll by Reuters forecast crude stocks rose by just 1.3 million barrels.
U.S. crude oil pared gains slightly in post-settlement trade, falling by 23 cents to $102.31 a barrel in the immediate minutes after the data was released.
However, traders said they remained bullish as they awaited official data from the Energy Information Administration to be released Wednesday at 10:30 a.m. EDT (1430 GMT), that is expected to show that gasoline stocks and stockpiles at the Cushing, Oklahoma, delivery point fell.
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