U.S. crude-oil futures tick higher, undoing the previous day’s losses but Nymex crude remains on track for a weekly loss amid heavy supply.
NEW YORK (MarketWatch) — U.S. crude-oil futures ticked marginally higher on Friday, undoing the previous day’s losses but staying on track for a weekly decline on worries over heavy supply.
The losses on Thursday came amid U.S. government data showing a rise in crude supplies for the eighth straight week. However, the contract had briefly turned higher after Janet Yellen — the nominee to replace Ben Bernanke as head of the Federal Reserve — defended the central bank’s bond-buying program and said its benefits outweigh the costs.
The Fed’s current policy is considered negative for the U.S. dollar and bullish for dollar-denominated commodities such as crude oil.
Oil prices have been supported by expectations that the Fed will delay scaling back its bond purchases, according to ICICI Bank analysts.
But, they added that “the gains are likely to remain capped” due to the bearish tone of Thursday’s oil-inventory data.
