Crude oil rebounds from 2013 low
LONDON (MarketWatch) — Crude-oil futures broke a three-session losing streak on Tuesday, as a weaker dollar boosted foreign investor appetite and upbeat euro-zone retail sales spurred a broader risk-on trading mood.
Crude oil for April delivery CLJ3 +0.63% added 22 cents, or 0.2%, to $90.33 a barrel, recouping after reaching the lowest level in 2013 on Monday.
The gains on Tuesday came as investors focused on data from the euro zone, with retail sales from January jumping 1.2% following a 0.8% decline in December. Additionally, the final reading of the euro-zone composite purchasing-managers’ index showed the region’s downturn deepened in February, albeit at a slower pace than initially estimated. See: Euro-zone final Feb. PMI shows deeper downturn
The better-than-expected data sets, however, weren’t enough to stem speculation that the European Central Bank will cut interest rates at its monthly policy meeting on Thursday. See: Europe stocks rise with retail sales, PMI in focus
A weaker dollar also provided support for oil prices, as the ICE dollar index DXY -0.15% fell to 82.07 from 82.214 in the U.S. late on Monday. A softer greenback tends to boost dollar-denominated commodities, as they become cheaper for other currency holders.
On Monday, Federal Reserve Vice Chair Janet Yellen said in a speech to the National Association for Business Economics that the central bank shouldn’t scale back its accommodative policy stance. Loose monetary policy, such as quantitative easing, tends to weigh on the dollar and support commodities. See: Fed’s Yellen: Full steam ahead on QE3
Elsewhere in the energy complex, gasoline for April delivery RBJ3 +0.79% added 0.3% to $3.11 a gallon, while heating oil for the same month HOJ3 +1.20% put on 0.4% to $2.93 a gallon.
April natural gas NGJ13 +0.68% jumped 1.2% to $3.57 per million British thermal units.
Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.
