Crude Oil prices climbed above $73 a barrel after an industry report showed U.S. supplies dropped, bolstering optimism that fuel demand in the biggest energy-consuming nation will increase. Oil rose for the first time in 6 days after the American Petroleum Institute said crude inventories fell by 5.82 million barrels. Oil fell after U.S dollar climbed against the EUR, damping demand for commodities as an alternative investment.
Oil markets have looked to wider economic data and equity markets this year for a sign of a turnaround in the economy that could bolster crude demand and drain high inventory levels in key consumers, such as the United States. Crude dropped after Federal Reserve Chairman Ben S. Bernanke said the U.S. economy will face a weak labor market and tight credit, signaling fuel demand will be slow to recover. A downward revision to the U.S. government's forecast for 2010 global demand growth also pressured Oil prices.