By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Benchmark U.S. crude-oil futures edged higher in electronic trading Thursday, bouncing from their lowest level since October, as the dollar weakened.
Crude for July delivery CLN2 +0.75% added 48 cents, or 0.5%, to $90.38 a barrel on the New York Mercantile Exchange during Asian trading hours.
Oil had closed below $90 a barrel in Wednesday’s regular New York session — the worst settlement for the most-active crude futures contract, on a closing basis, since October 2011 — as turmoil in the euro zone weighed on prospects for future energy demand.
European Union leaders reportedly discussed steps to restrain the possible fallout of a Greek exit from the currency bloc at an informal summit in Brussels on Wednesday.
While the summit yielded little new policy announcements and no deal on the issue of euro bonds, it did include further commitments to try to keep Greece within the euro zone. Read more on the EU summit.
Crude futures also managed to hold their gains despite more gloom about the global economy, as data released Thursday showed Chinese factory activity slowing further. Read more on China's factory slowdown.
A weaker dollar provided some support, as the dollar index DXY +0.04% , which tracks the greenback against a basket of six other major currencies, fell to 82.080, down from 82.174 in North American trade late Wednesday.
A softer greenback can encourage investment in dollar-denominated crude oil, as it makes the commodity more affordable to holders of other currencies.
Virginia Harrison is a MarketWatch reporter based in Sydney.
