Oil steadies as weak dollar offsets US stock build-up

Brent crude futures reversed early losses to hold steady on Tuesday as a weaker dollar offset expectations that weekly US crude inventory data will show another record build.

Brent June crude futures rose 10 cents to $64.93 a barrel by 1300 GMT after touching a low of $63.90 earlier in the session. US June crude rose 10 cents to $57.09 a barrel, recovering from an intra-day low of $56.91.

The dollar was down 0.31 per cent against a basket of currencies, helping to curb Brent's losses. A weaker greenback makes dollar-priced commodities more attractive for holders of other currencies.

US commercial crude stockpiles were expected to have risen last week for the 16th straight week, up from a record 489 million barrels, even though drilling activity fell, a preliminary survey by Reuters showed on Monday.

Brent crude hit a 4-1/2 month high of $65.80 a barrel last week, while West Texas Intermediate (WTI) has risen for six consecutive weeks, underpinned by net long positions on both contracts as speculators bet on a decline in U.S. shale output.