MW:Crude oil rises for sixth day; supported by weak dollar
LONDON (MarketWatch) — Crude-oil prices moved higher in quiet trade on Tuesday, with the futures finding continued support in a weaker dollar as the market waited for Federal Reserve Chairwoman Janet Yellen’s first monetary-policy testimony.
March crude oil CLH4 +0.28% rose 32 cents, or 0.3%, to $100.37 a barrel, setting it on track for a sixth-session climb in a row.
On Monday, prices inched 0.2% higher for their highest close of the year as traders looked ahead to inventory data and Yellen’s first speeches as Fed chief.
First up, is her testimony before the House Financial Services Committee on Tuesday, which has the potentially to provide further upside for crude prices. A dovish tone from the chairwoman could weaken the dollar, which would provide a boost for dollar-denominated commodities, such as oil. Leading up to the comments, the ICE dollar index DXY -0.12% fell to 80.529 from 80.63 late Monday and helped lift crude futures in early trade.
“In the absence of any major fundamental changes and in view of the sideways trend that has been observed for months now, traders on the oil market are grateful for even the slightest impetus that brings movement into the otherwise calm trading situation,” analysts at Commerzbank said in a note.
“At such times it is often the prices themselves that make the headlines, with technical aspects moving into focus,” they added.
Brent crude oil’s March contract UK:LCOH4 +0.38% added 48 cents, or 0.4%, to $109.01 a barrel.
Elsewhere in the energy complex, natural-gas prices moved higher, continuing to benefit from the extremely cold weather in the U.S. The March contract NGH14 +1.29% gained 5 cents, or 1.1%, to $4.63 per million British thermal unit. On Monday, natural-gas futures dropped for a fourth straight day.
March gasoline RBH4 +0.61% gained 2 cents, or 0.7%, to $2.74 per gallon and heating oil for the same month HOH4 +0.39% climbed 1 cent, or 0.4%, to $3.01 a gallon.
