Oil falls toward US$38 in New York after dollar's decline eases

[NEW YORK] Oil fell toward US$38 a barrel after the dollar halted a three-day drop, reducing the appeal of crude as an investment.

Futures in New York fell as much as 0.8 per cent after stemming four days of losses on Wednesday, when futures retreated from the day's highs along with the Standard & Poor's 500 Index.

A report also showed US crude oil stockpiles climbed, keeping them at the highest level since 1930.

Oil tumbled to a 12-year low this year before rebounding on speculation the global surplus will ease as US output declines.

West Texas Intermediate declined to as low as US$38.01 a barrel on the New York Mercantile Exchange, down 31 US cents, and traded at US$38.06 at 9.38 am Sydney time.

The contract gained 4 US cents to US$38.32 on Wednesday. Total volume traded was about 86 per cent below the 100-day average.

Brent for May settlement rose 12 US cents to US$39.26 a barrel on the London-based ICE Futures Europe exchange on Wednesday.

The global benchmark crude closed at a 94-US cent premium to WTI.

Crude inventories rose 2.3 million barrels to 534.8 million last week, according to the Energy Information Administration.

Supplies at Cushing, the delivery point for WTI traded in New York, slipped 272,000 barrels to 66 million.

BLOOMBERG