BS: Oil Gains as Dollar Weakens, OPEC Indicates Quotas Won’t Change
By Margot Habiby
March 16 (Bloomberg) -- Crude oil rose for the first time in three days as the dollar weakened, buoying demand for most commodities as an alternative investment, and as OPEC ministers indicated they would refrain from increasing production.
Oil gained as much as 1.6 percent as the dollar index, which measures the U.S. currency against six trading partners, dropped for the fourth day in five. Saudi Arabia’s oil minister said yesterday oil prices are in the right range. The kingdom is OPEC’s biggest producer.
“It’s a pretty good move down for the dollar, and that’s definitely getting things perked up,” said John Kilduff, a partner at Round Earth Capital, a New York-based hedge fund that focuses on food and energy commodities. “The OPEC decision is baked in the cake.”
Crude oil for April delivery rose $1.07, or 1.3 percent, to $80.87 a barrel at 9:12 a.m. on the New York Mercantile Exchange. Earlier, it touched $81.09 a barrel. Crude has advanced 71 percent this year.
The dollar index fell 0.4 percent to 79.972.
--Editors: Joe Link, Richard Stubbe
To contact the reporter on this story: Margot Habiby in Dallas at mhabiby@bloomberg.net.
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.
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