Oil gained today as the dollar weakened and US gasoline stockpiles posted a surprise drop, while doubts lingered about the size of expected monetary stimulus by the Federal Reserve.
US crude for December gained 16 cents to $82.10 a barrel, after falling nearly 1 per cent yesterday, while ICE Brent added 2 cents to $83.25. The dollar slid more than 0.4 per cent against a basket of currencies.
US gasoline inventories fell by 4.4 million barrels last week, the Energy Information Administration (EIA) reported yesterday, dampening the bearish effect of greater-than-expected gains in crude stockpiles of more than 5 million barrels.
Although US oil demand jumped on a week-to-week basis, total US product demand fell 0.3 per cent in the four weeks to October 22nd from a year earlier, the EIA said, with gasoline use down 0.8 per cent in the period.
Oil will average over $83 a barrel in 2011, a Reuters poll showed, as expectation that a new round of US monetary stimulus would shore up the economy led analysts to raise forecasts for the first time in six months.
Most French oil refineries were set to start outbound deliveries of fuel as work stoppages ended at two plants on Wednesday, further easing a strike movement that has led to pump shortages across France.