U.S. crude rebounds on less than expected build in stocks

By Keith Wallis
SINGAPORE, March 30 (Reuters) - U.S. crude futures rebounded
in early Asian trade on Wednesday, buoyed by a forecast of a
less than expected build in crude oil stockpiles last week,
although concern over an oversupplied market and a stronger
dollar put a ceiling on gains.
Oil prices fell about 3 percent in the previous session
after Kuwait and Saudi Arabia said they would resume production
at the jointly operated 300,000-barrel-per-day Khafji field even
as oil output is supposed to be capped.
U.S. crude CLc1 rose 37 cents to $38.65 a barrel as of
2339 GMT after settling down $1.11 in the previous session.
Brent futures LCOc1 had yet to start trading.
U.S. crude stocks rose last week by 2.6 million barrels to
534.4 million barrels data from industry group, the American
Petroleum Institute, showed on Tuesday.
That was less than analysts' expectations of a 3.3 million
barrel build, but still a record high for a seventh straight
week.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by
319,000 barrels, API said.
Official inventory data from the U.S. Department of Energy's
Energy Information Administration is due for release later on
Wednesday.
The dollar index .DXY rose slightly on Wednesday after
slipping to an eight-day low in the previous session. A stronger
dollar makes greenback-denominated commodities more expensive
for holders of other currencies.
Rosneft, Russia's top oil producer, is set to lower oil
output, Russian Natural Resources Minister Sergei Donskoi said
on Tuesday, although he gave no time frame.
OPEC member Iran is expected to attend an oil producers
meeting in Doha on April 17 to discuss a cap on global oil
production, although it may not take part in the discussions, a
source familiar with Iranian thinking said on Tuesday.