Brent crude prices dipped 1.3% to 51.34 US dollars (£39.39) per barrel as investors fretted about a smaller than expected drop in US crude inventories reported by the US Energy Information Administration.
Oil erased loses as a weaker dollar made commodities priced in the US currency more attractive to investors.
The dollar dropped against all but two of its 16 major counterparts, extending last week’s decline, which was the biggest in three years, as the Federal Reserve damped the outlook for higher rates.
Crude fell as much as 2.7% in New York earlier as Saudi Arabia’s comments that it’s pumping crude near a record pace signaled that the global supply glut will persist.
