CNBC: Oil boosted by relentless US winter, offsets weak data
Brent crude rose on Tuesday, as robust demand for heating purposes from North America and a weak dollar offset concerns over disappointing U.S. data.
Brent crude was trading above $109 a barrel, holding above Monday's close of $109.18 - the highest settlement since Feb. 7. U.S. crude was up nearly $1 above $101 a barrel.There was no settlement on Monday as U.S. markets were shut for Presidents' Day holiday.
A slew of disappointing U.S. data pinned the dollar near six-week lows against a basket of currencies on Tuesday, while investors will scour the minutes of Federal Reserve's last policy meeting on Wednesday and China's manufacturing data on Thursday for clues on the health of the global economy.
A weak dollar supports commodities priced in the greenback by making them cheaper for holders of other currencies.
Oil prices also drew support from a report that showed developed countries started the year with the lowest oil inventories since 2008. Oil inventories in the developed world plummeted by 1.5 million barrels per day (bpd) in the last three months of 2013, the steepest quarterly decline since 1999, the International Energy Agency (IEA) said in its monthly report last week.