RTRS: Oil near $50 on firmer equities, weak dollar
Oil rose toward $50 a barrel Tuesday, heading for its largest monthly and quarterly gain since June 2008, gaining a lift from rising stock markets and a weaker dollar.
European stocks gained, with banks and drugmakers taking the lead, following a rise in Asia. A weak dollar can increase the appeal of oil and commodities to some investors.
U.S. crude rose $1.29 to $49.70 a barrel by 7:02 a.m. EDT, having earlier climbed more than $1 to as high as $49.82. London Brent crude rose $1.51 to $49.50.
Oil's more than 10 percent rally in March has been prompted by rallying stock markets and lower oil supplies as the Organization of the Petroleum Exporting Countries cuts production.
The price is still down nearly $100 from the record high reached last year because the global economic crisis has eroded oil demand. Worldwide, demand is expected to contract in 2009 for a second consecutive year.
Further evidence of weakening demand came from Japan, the world's third-largest energy consumer, where crude oil imports in February fell 3.3 percent from a year ago.
The next major indication on demand will come from U.S. weekly data which will probably show crude stocks rose for a fourth straight week, according to a preliminary Reuters poll.
Industry group the American Petroleum Institute releases its report Tuesday at 4:30 p.m. EDT and the Energy Information Administration Wednesday.
Economic data on the horizon include Tuesday's releases on U.S. retail sales and consumer confidence.
