London: The dollar edged lower against a basket of currencies on Tuesday, staying below a two-week high scaled after US jobs data last week stoked expectations for a Federal Reserve rate rise later this year.
Traders said economic indicators and upcoming auctions for US debt could underscore this shift in market sentiment.
“All eyes have been on stock markets and currency markets lately,” said Tony Machacek, a broker at Bache Commodities.
“The auctions today could have a significant shift in the trend of the dollar, and I wouldn’t be surprised by a spill-over into oil values.”
Nobuo Tanaka, executive director of the International Energy Agency, told Reuters on Monday the agency expected oil stocks in developed OECD economies to fall to 57 days by year-end from 63 days now if Opec keeps output at current levels and demand recovers.
Later on Tuesday, the market could take direction from weekly US inventory data from industry group the American Petroleum Institute, which is scheduled for release at 2:00am.
It will be followed by US Energy Information Administration data on Wednesday.
Analysts polled by Reuters said they expected crude stocks to have fallen by 400,000 barrels last week, while distillate and gasoline stocks could have risen by 1.2 and 1.3 million barrels respectively.
Last week, US crude oil stocks rose by a more-than-expected 2.9 million barrels.