Oil prices hovered around $76 a barrel Wednesday as a weakened U.S. dollar overshadowed a U.S. government report showing a less-than-expected build in U.S. crude inventories.
Benchmark crude for January delivery fell a penny to $76.01 on the New York Mercantile Exchange.
Oil’s gains were kept in check by the weakened U.S. dollar, which fell to a 15-month low against the euro.
The Energy Department’s Energy Information Administration on Wednesday reported a 1 million-barrel build in crude oil reserves from the previous week. Analysts expected crude stocks to rise by 1.4 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.
Crude has fallen about 7 percent since reaching its high this year of $82 a barrel last month amid evidence that economic recovery in the U.S. will be tepid.
Oil is testing the bottom of a monthlong trading range of between $76 a barrel and $82, and some energy analysts, such as Ritterbusch and Associates in Galena, Illinois, say prices could fall to $70 a barrel during the next month.
Other analysts, however, expect prices to rebound as investors seek an inflation hedge amid a weakening U.S. dollar. Bank of America Merrill Lynch forecast an average price of $85 a barrel next year.
“Loose monetary policy and a weaker dollar should put upward pressure on crude oil prices next year,” the bank said in a report.
