Excon Fuji Securities found oil as it inched up slightly on Thursday recovering from last session’s 5 percent plunge as the dollar continued slipping which largely encourage traders to buy riskier assets.
Lower USD prices make the dollar-denominated commodity cheaper for investors holding other currencies, and less attractive for traders seeking higher returns.
Previously, prices fell under pressure after the International Energy Agency lowered its global demand expectations.
Oil prices have been volatile since reaching a 30-month high at $115 on May 2nd. The Chicago Mercantile Exchange tried to control "speculation" in oil by requiring a 25 percent margin on oil futures contracts.
In London, Brent crude for June delivery scored 41 cents higher at $112.98 a barrel, jumping from a low of $110.15.
Oil futures took a steep slip on Wednesday, after the U.S. Energy Information Administration data stated that gasoline demand eased up 2.4% last week, which is the largest decline in seven consecutive weeks. On the other hand, oil supplies increased last week by 3.8 million barrels, twice as much as what analysts predicted.
U.S. June crude increased 76 cents climbing up to hit $98.97 a barrel, while U.S. gasoline futures lost 5.89 cents to $3.0639 a gallon, after shedding 26 cents on Wednesday.
According to Greg Daco, senior economist at IHS Global Insight, imports prices have jumped up over the past several months due to the higher costs of oil.
"What we're seeing right now is higher oil prices and higher commodity prices, and producers have to make a tough decision, either reducing their margin and taking the brunt of the hit or passing on those higher costs and risk having lower demand", Daco noted.
