Oil prices rise on economic outlook, drawdown in fuel stocks

Oil prices rose on Thursday on a weaker dollar as fears of rising U.S. inflation eased while a steep fall in U.S. fuel stocks meant a crude glut would be short-lived as refiners restart in Texas.

Brent crude oil futures for May rose 79 cents, or 1.16%, to $68.69 a barrel by 1430 GMT, while U.S. West Texas Intermediate crude for April was up 62 cents, or 0.96%, at $65.06. Both contracts had risen by more than $1 a barrel in earlier trade.

“Fears of inflation are receding as the February U.S. CPI was at 1.7%. Consequently, bond yields fell and equities stabilized with the Dow hitting an all-time high. The dollar, therefore, is weakening, which helps oil,” Tamas Varga, senior analyst at PVM Oil Associates, said.