Oil Advances as Strategic Reserve Release Points to Tight Supply - Bloomberg:
Crude rose the most in more than two weeks as a U.S. plan to sell strategic oil reserves intensified concerns about tightening global supplies.
Futures in New York rose as much as 2.5 percent on Tuesday. Almost 2 percent of the U.S. petroleum reserve will be released later this year just as sanctions are anticipated to begin choking off Iranian crude exports. In the near term, American oil inventories probably declined last week, and the weakening greenback boosted the appeal of dollar-denominated commodities.
“The strength is really primarily from the weak dollar and also you’re getting another week of expectations that you will see crude stocks drop,” said Gene McGillian, manager of market research at Tradition Energy. “The fundamental picture is tighter than it was a year ago.”
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