By Sam N. Adams
NEW YORK (Reuters) - U.S. crude futures settled more than 1 percent higher on Monday, boosted by a falling dollar that outweighed pressure on prices from a global supply glut.
"The dollar is under pressure, and we saw buyers coming into the market as a result," said Tradition Energy senior analyst Gene McGillian.
U.S. crude futures settled
Oil got a boost as the U.S. dollar fell further, adding to its steepest weekly drop in 3-1/2 years. Market watchers have been unwinding long dollar positions since the Federal Reserve indicated last week that a U.S. interest rate hike is likely to come later rather than sooner.
Oil prices were pressured as Saudi Arabia has stood firm on its decision to maintain production levels, saying it would consider cutting output only if producers outside OPEC also did so.
Saudi Oil Minister Ali al-Naimi said the kingdom was now pumping about 10 million barrels per day, which could indicate an increase of 350,000 bpd over its February production.
Barclays analysts forecast on Monday that if OPEC production holds near current levels of almost 30 million bpd, the market surplus would expand from 900,000 bpd to 1.3 million bpd.
Houston-based Schlumberger Ltd
China's February crude oil imports from Iran fell 3.7 percent from a year earlier to 2.04 million tonnes. China boosted overall imports late last year, taking advantage of cheap oil to build its reserves, but storage tanks could be reaching their limits, forcing a slowdown in orders.
(Additional reporting by Ron Bousso in London; editing by Jason Neely, Dale Hudson, Lisa Von Ahn, Andrew Hay and David Gregorio)
