Brent steadies above $57

Brent crude steadied above $57 a barrel on bargain hunting by investors, but gains were capped by a steadying dollar after its fall from multi-year highs on weaker US retail sales.

Asian investors were also mulling the impact from a tentative deal that would end a strike by US refinery workers.

Brent for April delivery was trading up 5 cents at $57.13 in early trading after ending the previous session down 46 cents.

US crude futures rose 3 cents to $47.08 after settling down $1.12, or 2.3 percent, in the previous session. The April contract expires on 20 March.

Prices could also move higher once investors digest the impact from a pact to end a 40-day walkout by workers at 12 refineries, which has affected a fifth of US refining capacity. Brent’s premium to US crude had climbed to more than $10 mainly due to the strike, the longest walkout by refinery workers in 35 years.

The deal would boost refining volumes that could reduce US crude stockpiles which climbed to 448.9 million barrels, the highest level in 80 years.

But the reopening of the Houston ship canal, which was closed by fog and a collision between ships, could boost oil imports, potentially dampening prices.

“When the strike’s over the premium will drop down to about $4,” Ang said.

Oil prices on Friday were supported by a softer US dollar, which posted its biggest one day fall in a month on Friday, retreating from a 12-year high against a basket of major currencies on an unexpected fall in US retail sales in February.

Investors are also eyeing developments in Libya and Iraq. Islamist militants claimed responsibility for a bomb attack in the Libyan capital Tripoli even as production from the OPEC member’s western oilfields, saw a surprise comeback.

Oil companies in Iraq have proposed cutting development spending by millions of dollars after the country’s oil ministry told them low oil prices and its fight against Islamic State had made payments difficult.