Oil pared the biggest weekly decline in more than two months as the dollar extended its retreat, increasing the appeal of commodities priced in the U.S. currency.
Futures rose as much as 1 percent in New York, trimming a 9.8 percent drop the previous six sessions.
The Bloomberg Dollar Spot Index dropped for a third day, heading for its second weekly decrease in three weeks. There’s no need for Russia and Saudi Arabia to cooperate on influencing crude markets right now and low prices may persist for 10 to 15 years, Russian Oil Minister Alexander Novak said in a Bloomberg television interview.
Oil’s advance from the lowest level in more than 12 years in February has stalled on speculation higher prices will encourage more U.S. output just as global disruptions ease. ConocoPhillips has restarted almost three-quarters of oil-sands wells at its Surmont facility in Canada after wildfires forced producers to halt output.
“With Canadian production returning, prices may have climbed as far as they could for now,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. “It’s likely the correction will be shallower than it would have been earlier in the year because the market is seen as being closer to balance.”
West Texas Intermediate for July delivery rose as much as 46 cents to $46.67 a barrel on the New York Mercantile Exchange and was at $46.58 at 1:35 p.m. Hong Kong time. The contract slid $1.80 to $46.21 Thursday, the lowest close since May 13. Total volume traded was 24 percent above the 100-day average. Prices are down 5.1 percent this week after rising above $51 on June 8.
Brent for August settlement gained as much as 66 cents, or 1.4 percent, to $47.85 a barrel on the London-based ICE Futures Europe exchange. The contract on Thursday fell $1.78 to $47.19, the lowest close since May 10. Prices are down 5.5 percent this week. The global benchmark crude traded at a 55-cent premium to WTI for August.
There are risks that oil prices will fall if production in Canada, Libya or Nigeria rebounds after supply disruptions in those countries, Russia’s Novak said Thursday in St. Petersburg. At current prices, U.S. shale output will probably start recovering early next year, he said.
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