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NEW YORK — Oil was flat Monday, as the dollar pulled back from lows set earlier in the day and investors awaited this week's Fed meeting.
Oil is priced in dollars, so it tends to fall as the dollar strengthens and makes crude more expensive for investors holding foreign money. While the dollar was down slightly versus other major currencies, it bounced back from earlier lows.
The dollar has been weak because investors think the Federal Reserve will continue to keep interest rates near zero when it meets Tuesday and Wednesday. Other central banks have been raising interest rates out of concerns about inflation. Rock-bottom U.S. interest rates make the dollar less attractive to investors.
Benchmark crude for June delivery lost a penny to settle at $112.28 per barrel on the New York Mercantile Exchange. In London, Brent crude lost 33 cents to settle at $123.66 per barrel on the ICE Futures exchange.
Gas pump prices continued to climb for the 34th straight day, to a national average of more than $3.86 per gallon, according to AAA, Wright Express and Oil Price Information Service. A gallon of regular has increased 32 cents since March 22. The average price is now a dollar more per gallon than a year ago.
In other Nymex trading, heating oil lost 1.73 cents to settle at $3.1989 per gallon and gasoline futures added less than a penny to settle at $3.2785 per gallon. Natural gas dropped 2.3 cents to $4.389 per 1,000 cubic feet.
