Brent slips, US crude holds steady on resilient dollar

By Sam N. Adams NEW YORK (Reuters) – Brent crude fell on Tuesday as the dollar regained ground against the euro and fears of a global oversupply persisted, while U.S. crude was supported by strong domestic economic data . Brent’s decline came after the greenback reversed early losses to rise 0.24 percent against the euro, making dollar-denominated commodities more expensive in the euro zone. Brent futures for May delivery settled at $55.11 a barrel, down 81 cents. U.S. crude rose 6 cents to $47.51. The U.S. Commerce Department said new home sales rose 7.8 percent to a seasonally adjusted annual rate of 539,000 units last month, the most since February 2008. Financial information services firm Markit said that the US manufacturing purchasing managers’ index rose to its highest level since October. . “Today it looks like the market has taken a breather after hitting six-year lows last week,” said Gene McGillian, senior analyst at Tradition Energy. “Positive economic reports helped.” U.S. crude inventories, already at their highest level in 80 years, were forecast to rise for a record 11th week, an extensive Reuters poll showed on Tuesday. A survey of analysts ahead of weekly industry and government inventory reports forecast a 5.1 million barrel crude stockpile increase last week. (EIA/S) In the week to March 13, U.S. crude oil inventories rose nearly three times more than expected, according to data from the U.S. Energy Information Administration. Late on Tuesday, industry group the American Petroleum Institute (API) released data showing that US crude oil inventories rose by 4.8 million barrels last week, while gasoline and distillate stocks fell. (API/S) The US Energy Information Administration’s inventory report is due at 10:30 a.m. EDT on Wednesday. Oil prices were also under pressure on Tuesday after data showed factory activity in China slowed in March, adding to concerns about growth in the world’s second-largest economy and biggest oil importer. U.S. factory activity rose slightly. The Chinese data followed comments from OPEC chief Saudi Arabia that it was pumping about 10 million barrels per day (bpd) of crude, close to an all-time high and about 350,000 bpd more than OPEC reported output in February. BP lifted its major force at oil loadings from Angola’s Saturno River, which typically exports about 150,000 bpd. The suspension of operations began on March 16 when power went out to some fields. (Additional reporting by Robert Gibbons in New York, David Sheppard in London and Henning Gloystein in Singapore; Editing by Dale Hudson, Pravin Char, David Evans, David Gregorio and Diane Craft)