Light oil prices are trading slightly above the $80 mark on Thursday in Asia as crude traders mull a surging US dollar and rising US crude inventories.
US Light crude oil futures for June delivery was up 17 cents to $80.14 a barrel at midday Singapore time on the NYMEX after loosing $2.77 to settle at $79.97 in Wednesday’s trading session.
The EIA had announced on Wednesday that US crude oil inventories rose by 2.8 million barrels last week while analysts had expected an increase of only 1.5 million barrels, according to a survey by Platts.
“Crude and products futures continued to slide on heavy overnight volume as the dollar made further gains against the euro,” said Addison Armstrong, analyst at Tradition Energy.
The euro extended losses, falling to a 14 month low against the US dollar as fear that European debt problems might spread pressured the currency and triggered automatic sell orders beneath $1.29 to levels not seen since the middle of March 2009.