Oil prices rise as dollar dips

[LONDON] Oil prices rose on Monday, rebounding from early losses, as the dollar retreated against the euro, traders said.

US benchmark West Texas Intermediate for delivery in May gained 27 US cents to US$46.84 a barrel compared with Friday's close.

Brent North Sea crude for May climbed 12 US cents to stand at US$55.44 a barrel in late London deals.

The euro gained versus the dollar Monday with all eyes on Greek Prime Minister Alexis Tsipras, who arrived in Berlin expected to tout new reform plans after warning it would be impossible to service his country's crushing debt without fresh EU cash.

A weaker dollar makes crude priced in the US unit cheaper for holders of rival currencies, supporting demand.

Oil futures had fallen earlier in the day after Saudi Arabia said it was pumping more oil, exacerbating a global supply glut.

"Selling pressure was generated in particular by statements made at the weekend by the Saudi Arabian oil minister," said Commerzbank analyst Carsten Fritsch.

Bloomberg News quoted Saudi Arabia's oil minister Ali al- Naimi as saying on Sunday that his country is producing almost 10 million barrels of crude a day.

Saudi Arabia, the main producer in the Organization of the Petroleum Exporting Countries, pumped 9.85 million barrels a day in February, according to Bloomberg.

Naimi meanwhile has called on oil producers outside OPEC to help boost falling crude prices as the cartel refuses to take responsibility alone.

"We refuse to take responsibility alone because (OPEC) produces 30 per cent of market output and 70 per cent comes from outside," Naimi said in remarks carried Monday by the Saudi Press Agency (SPA).

New York prices slumped by about 60 per cent between June and February, weighed down by a glut of global supplies and concerns about stalling demand.

The slide was exacerbated in November when OPEC refused to cut production to rescue falling prices, with analysts saying the cartel wanted to maintain its market share amid surging US output.

Crude futures had won a boost Friday from another fall in the dollar and market adjustment at the end of the April contract for WTI, analysts said.

The US benchmark West Texas Intermediate for delivery in April had added US$1.76 to US$45.72 a barrel in New York trade.

AFP