Oil steadies on easing storm concerns, dollar

LONDON - Oil steadied at around $141 on Tuesday after the previous session's $4 plunge, due to a mix of a weaker U.S. dollar and easing concerns over an Atlantic hurricane.

By (Reuters)

Published: Tue 8 Jul 2008, 6:33 PM

Last updated: Sun 5 Apr 2015, 12:48 PM

U.S. light crude was trading 32 cents lower at $141.05 a barrel by 0930 GMT, reversing a $1 gain earlier. London Brent crude dipped 45 cents to $141.42.

Oil prices fell $3.92 on Monday on signals that Iran would be more flexible in negotiations over its nuclear programme. Oil has fallen from a record high of $145.85 hit last week.

Hurricane Bertha became a "major" hurricane on Monday, but none of the computer models used to predict storm tracks indicated Bertha would steer toward the Gulf, the home of U.S. oil and gas industry.

With the onset of the Atlantic hurricane season this year, oil traders will be watching for any signs of a storm that could disrupt Gulf oil production and refining operations.

"Iran issues still remain supportive but it seems the tone is easing for now and the hurricane is gone," a broker said.

"The market will be mostly stable today until the market focus turns to U.S. statistics on Wednesday."

The U.S. dollar fell against the yen but inched up against the euro.

The weekly U.S. oil inventory data, which will include gasoline demand during the long weekend for the July 4 Independence Day holiday, will be released on Wednesday.

A Reuters preliminary poll shows analysts expect a 1.5 million barrel decline in crude stocks, a rise of 200,000 barrels in gasoline supplies and an increase of 1.8 million barrels in distillates.

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