WTI, Brent up on lower dollar

Oil prices were significantly higher Thursday as the US dollar fell and ahead of expiration of April contracts at the end of the trading day on Friday.

April contracts for West Texas Intermediate crude added $3.47 to $51.61 per barrel on the New York Mercantile Exchange, while May contracts were up $3.14 to $52.04 per barrel and Thursday’s floor session ended.

Meanwhile, Brent crude added $2.97 to $50.63 per barrel on the ICE Futures Europe exchange in London.

Declines in the dollar made oil less expensive for buyers using currencies other than the dollar, spurring purchases, while prices were also helped by optimism that the economy will be aided by the Federal Reserve’s plan to buy $300 worth of Treasury bonds as one of a number of programs aimed at stimulating the economy.

Prices rose even though the Federal Highway Administration reported that US drivers put seven billion fewer miles on their cars in January than they did in January of last year.

In afternoon trade, Nymex April gasoline added 7 cents to $1.44 per gallon while May heating oil was up 9 cents to $1.36 per gallon and May natural gas gained 48 cents to $4.24 per million British thermal units after the US Energy Information Administration said that natural gas in storage was down by 30 billion cubic feet last week.