Oil Dips on Rise in US Crude Inventories

Crude oil futures dipped on Wednesday as the US dollar held around three-week highs and industry stocks data indicated a build in US crude inventories.

    The US dollar index, which measures the currency against a basket of six majors, rose as high as 96.143, its highest level since August 9, on Tuesday. A stronger greenback makes dollar-priced commodities like oil more expensive for holders of other currencies and possibly capping demand.

    Meanwhile, data by industry group American Petroleum Institute late Tuesday showed that US crude stocks rose by 942,000 barrels in the week ended August 26. The group also forecast gasoline stocks to have fallen by 1.6 million barrels and a 3 million-barrel increase in distillate inventories.

    International Brent crude oil futures were trading at $48.30 per barrel at 0652 GMT, down 7 cents from their previous close. US West Texas Intermediate (WTI) crude futures were down 7 cents at $46.28 a barrel.