1st LD Writethru: Oil prices retreat on profit taking

Crude prices retreated Thursday following heavy gains the previous day.

Crude prices rebounded sharply Wednesday as U.S. dollar depreciated after the statement from Federal Reserve. A weaker greenback made the dollar-priced crude less expensive and more attractive for buyers holding other currencies.

The U.S. dollar slumped against other major currencies on Wednesday as the Federal Reserve remained cautious in raising interest rates in its policy statement. Traders believed that the greenback was under pressure as the announcement signaled that the widely expected June rate hike was almost off the table.

Meanwhile, concerns about global supply glut continued to weigh on the market. U.S. crude supplies of the week ended Wednesday. U. S. crude stockpiles increased 9.6 million barrels to 458.5 million, 82.7 million barrels more than a year earlier, according to the Energy Information Administration.

Inventories at Cushing, Oklahoma, the delivery point for the contract, gained 2.9 million barrels to 54.4 million barrels. U.S. crude production reached 9.419 million barrels a day last week.

Light, sweet crude for April delivery lost 0.7 U.S. dollar to settle at 43.96 dollars a barrel on the New York Mercantile Exchange,while Brent crude for May delivery moved down 1.48 dollars to close at 54.43 dollars a barrel. Endite