Supply fears, weaker dollar lifts Oil 29/04/2015

Supply fears, weaker dollar lifts Oil 29/04/2015 09:38 Oil futures climbed in the domestic market on Tuesday as investors and speculators booked fresh positions in the energy commodity after Iran seized a commercial cargo ship travelling through the Persian Gulf, fanning fears over disruption of crude supplies from the oil-rich Middle East region. Further, a weaker dollar boosted the demand for the fuel as an alternative asset. Weaker greenback makes crude cheaper for those holding other currencies, thus bolstering demand. However, the gains in crude oil were curbed after Saudi Arabia; the world’s biggest oil exporter said that it will keep pumping oil and US crude stockpiles climbed to a record last week, raising worries over a global supply glut. US crude supplies climbed 4.2 million barrels to a record 485.4 million barrels last week, the API said. Investors weighed mixed US economic data which showed that consumer confidence retreated in April but home price gains accelerated in the world’s biggest economy. The gauge measuring US consumer sentiment fell to 95.2 in April from 101.4 in March, while the index of home prices in 20 US cities rose 5 per cent, year on year in February 2015, accelerating from an annual 4.5 per cent rise in January 2015. Oil may decline today as a sixteenth straight rise in US stockpiles fans fears of a worsening global supply glut. At the MCX, Crude oil futures, for the May 2015 contract, closed at Rs 3,626 per barrel, up by 0.42 per cent, after opening at Rs 3,607, against the previous close price of Rs 3,611. It touched an intraday high of Rs 3,668 till the closing