Crude-oil futures settled higher today, rebounding from a fall of more than 4% in the previous session, as a government report showed a drop in total U.S. crude oil and fuel supplies and the dollar weakened.
The Department of Energy's Energy Information Administration said total U.S. commercial crude-oil and fuel stockpiles fell by 2 million barrels in the week ended Oct. 15, continuing a decline from 27-year highs hit last month.
The EIA report combined with a sharply weakening dollar to retake much of the ground crude lost Tuesday, when a stronger dollar and fears of slowing demand in China pushed oil futures below $80 a barrel for the first time this month.
A weakening dollar has led crude higher in recent weeks, making oil and other commodities more attractive as investors seek hard assets. Traders said oil is likely to continue following the greenback, and further weakness should keep oil prices in a new trading range between roughly $80 and $85 a barrel.
