Oil retreats on inventory buildup, strong dollar

Oil prices halted a fourth-day rising streak and retreated on Friday as a buildup in crude inventory and strengthening dollar pressured on the commodity's prices.

The U.S. Energy Department Energy Information Administration reported on Friday that, during the week ended on February 5, crude supplies rose 2.42 million barrels to 331.4 million barrels, more than analysts' forecasts.

A weak demand weighed on the market as investors see no quick comeback in energy consumption. Earlier this week the industry group American Petroleum Institute said crude inventories increased by an enormous 7.2 million barrels.

Meanwhile, the dollar rallied against the euro after latest report showed that the euro region's gross domestic product grew less than forecast in the fourth quarter of last year. According to the report by the EU's statistics office in Luxembourg, the region's GDP rose by 0.1 percent. A rising green back usually limits appeal of crude commodities as an alternative investment.

Light, sweet crude for March delivery fell 1.15 U.S. dollars to settle at 74.13 U.S. dollars a barrel on the New York Mercantile Exchange.

In London, Brent crude for April settlement fell 1.22 dollars to 72.90 dollars a barrel on the ICE Futures Exchange.

Source: Xinhua