Oil prices jumped on Friday, snapping a 4-weeks losing streak, as the dollar fell on interest-rate uncertainty, lifting demand for dollar-denominated commodities from holders of other currencies.
U.S. crude settled up $1.76, or 4 percent, at $45.72 a barrel, marking its biggest daily gain since Feb. 12.
Contract expiry in U.S. crude added momentum. Traders and investors tried to narrow the price difference between the expiring April contract in U.S. crude and nearby May, which will become front-month from Monday. Brent's front-month May contract was up 1.6 percent at $55.20 a barrel, after a session low of $53.55.
The dollar was lower as a Federal Reserve statement on Wednesday fed the view that the U.S. central bank is in no hurry to raise interest rates. The euro was up more than 1 percent against the dollar as leaders of Greece and Germany struck a conciliatory note over efforts to keep Greece in the euro zone, although Athens was told to adhere to strict aid terms.
[CAD:FXAcademy CTA #75]Drilling Rigs Drop
Oil services firm Baker Hughes reported a new four-year low in the number of rigs drilling for oil in the United States. This week's rig declines were smaller than those in the past two weeks as U.S. drillers cut the number of rigs drilling for oil by 41 this week to 825, the lowest total rigs since March 2011.
The number of oil rigs this week declined for a 15th week in a row, matching the longest streak for oil rig reductions set in March 2009.