NEW YORK — Brent crude oil fell on Tuesday as the dollar regained its footing against the euro and fears of global oversupply persisted, while US crude's losses were limited by strong domestic economic data. The fall in Brent came after the dollar reversed early losses to rise 0.4 percent against the euro, making dollar-priced commodities more expensive in the euro zone. Brent futures for May delivery fell 80 cents to trade at $55.10 at 11:43 EDT (1643 GMT). US crude oil was down 15 cents down at $47.30. US crude stocks, already at their highest in at least 80 years, were forecast to have risen for an 11th record-breaking week, a preliminary Reuters survey showed. Six analysts, polled ahead of weekly inventory reports from industry group the American Petroleum Institute (API) and the US Energy Information Administration, turned in an average forecast for a crude stock build of 5 million barrels last week. In the week to March 13, US crude stocks rose nearly three times as much as expected. Oil prices were also under pressure from data showing factory activity in China slipped in March, adding to concerns about growth in the world's second largest economy and top oil importer. US factory activity increased slightly. Stronger-than-expected global oil demand should help support crude prices at around $55-$60 a barrel in the next two months despite some signs of a growing glut in the United States, a senior Gulf OPEC delegate told Reuters on Tuesday. The comments appear to counter some market forecasts that the US oil glut may push prices to as low as $20-$30 and are a sign that the core Gulf OPEC members remain confident about their strategy of defending market share. “Global demand is definitely growing much stronger than expected. In December, January, and especially February it was beyond what forecasts anticipated,” the delegate said. Low oil prices may have encouraged demand to pick up particularly in the United States but also in Asia, the Gulf delegate, who declined to be identified, added. Oil prices are expected to fluctuate around $55-$60 a barrel through April, when they may come under pressure because of seasonal refinery maintenance and rising stocks in the United States, the Gulf OPEC delegate said. Saudi Arabian Oil Minister Ali Al-Naimi said on Sunday the top oil-exporting country is producing around 10 million barrels per day (bpd), indicating higher demand is helping the Kingdom claw back market share. The Gulf OPEC delegate said rising production reflects increasing exports to meet global demand as well as growing local needs. The Chinese data followed comments from OPEC kingpin Saudi Arabia that it is pumping around 10 million barrels of crude per day, close to an all-time high and some 350,000 barrels per day above the figure it gave OPEC for its February output. BP lifted its force majeure on oil loadings from Angola's Saturno stream, which typically exports about 150,000 barrels per day. The suspension in operations began on March 16 when a power loss at an offshore facility cut off power to some fields in Angola. — Agencies
