Oil up again, near $82 as investors see little change coming from Fed and OPEC meetings

Oil rises near $82 ahead of Fed, OPEC meetings

NEW YORK — Oil prices climbed back to near $82 on Tuesday as fresh housing data calmed investor concerns over the Federal Reserve’s meeting on interest rates.

Benchmark crude for April delivery rose $2.08, or 2.5 percent, $81.88 a barrel on the New York Mercantile Exchange.

Policymakers are almost certain to keep the Fed’s benchmark rate near zero, but investors will pore over the Fed’s statement for clues about when rates might change. As the economy improves the Fed will need to start increasing rates to fend off inflation.

Meanwhile, the Commerce Department said Tuesday that construction of new homes and apartments fell 5.9 percent in February to a seasonally adjusted annual rate of 575,000 units.

The weak housing report points to yet another obstacle to an economic recovery, which “puts less pressure on the Fed to raise interest rates,” said PFGBest Research Analyst Phil Flynn.

“The Fed has at least the perception of more wiggle room, and that puts downward pressure on the dollar and upward pressure on crude.”

The Fed is expected to release a statement at 2:15 p.m. EDT.

The dollar fell in morning trading, making dollar-denominated crude cheaper for holders of foreign currencies.

Oil prices have swung between $70 and $80 for most of the last nine months as global crude demand slowly recovers from the Great Recession but remains weak in developed countries.

“We have shifted from a bullish to a bearish trading posture,” Ritterbusch and Associates said in a report. “We will look for a resumption of selling by midweek.”

Saudi Arabia’s oil minister said Tuesday that he expects OPEC to keep output steady for the rest of this year. Ministers of the 12-nation group meet Wednesday in Vienna.

Retail gasoline prices fell Tuesday. The nationwide average dropped 3 cents to $2.787 per gallon according to AAA, Wright Express and Oil Price Information Service.

Gasoline prices have risen 16.7 cents in the last month and are now 87.7 cents higher than levels of a year ago.

In other Nymex trading in April contracts, heating oil rose 6.15 cents to $2.1191 a gallon, and gasoline added 5.72 cents at $2.2800 a gallon. Natural gas fell 6.1 cents at $4.330 per 1,000 cubic feet. Earlier, it hit a 52-week low of $4.323.

In London, Brent crude rose $1.81 to $79.70 on the ICE futures exchange.

AP writers Carlo Piovano in London and Alex Kennedy in Singapore contributed to this report.