Oil rises more than 1 percent, boosted by weaker dollar

Mon Mar 23, 2015 3:55pm EDT
 
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By Sam N. Adams

NEW YORK (Reuters) - U.S. crude futures settled more than 1 percent higher on Monday, boosted by a falling dollar that outweighed pressure on prices from a global supply glut.

"The dollar is under pressure, and we saw buyers coming into the market as a result," said Tradition Energy senior analyst Gene McGillian.

U.S. crude futures settled 88 cents up at $47.45 on Monday, a 1.9 percent climb. The price of Brent rose more than 1 percent to settle up 60 cents at $55.92 per barrel.

Oil got a boost as the U.S. dollar fell further, adding to its steepest weekly drop in 3-1/2 years. Market watchers have been unwinding long dollar positions since the Federal Reserve indicated last week that a U.S. interest rate hike is likely to come later rather than sooner.

Oil prices were pressured as Saudi Arabia has stood firm on its decision to maintain production levels, saying it would consider cutting output only if producers outside OPEC also did so.

Saudi Oil Minister Ali al-Naimi said the kingdom was now pumping about 10 million barrels per day, which could indicate an increase of 350,000 bpd over its February production.

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Pumpjacks taken out of production temporarily stand idle at a Hess site while new wells are fracked near Williston, North Dakota November 12, 2014. REUTERS/Andrew Cullen