Oil prices rise on weaker dollar, supply concernswritten by Bella Palmer
Brent crude futures rose 82 cents, or 0.9%, to $92.44 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 86 cents, or 1.0%, to $86.32 per barrel
Oil prices climbed on Tuesday, bolstered by a weaker U.S. dollar and supply woes, although gains were capped by the spectre of lower fuel demand from China as it persists with its stringent zero-COVID policy.
Brent crude futures rose 82 cents, or 0.9%, to $92.44 per barrel by 0643 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 86 cents, or 1.0%, to $86.32 per barrel.
The U.S. dollar index - which measures the greenback against six major peers including sterling - sagged to its lowest since Oct. 6. A weaker dollar makes oil cheaper for buyers holding other currencies, making them more likely to make purchases.
Following the steep production cut agreed on by OPEC+ - the Organization of the Production Exporting Countries (OPEC) and its allies, including Russia - earlier this month, investors have been seen increasing their long positions in futures, ANZ Research analysts said in a note.
OPEC+ member states have been lining up to endorse the cut to the output target after the White House accused Riyadh of coercing some other nations into supporting the move.
Meanwhile, expectations that China will stick to a loose monetary policy to help its economy, hobbled by COVID-19 restrictions, lent some support to oil prices. The country's central bank rolled over maturing medium-term policy loans on Monday while keeping its key interest rate unchanged for a second month.
China's fuel demand outlook, however, weighed on sentiment after the world's top crude oil importer delayed the release of its economic indicators, originally scheduled to be out on Tuesday, CMC Markets analyst Tina Teng said. No date for a rescheduled release has been given.
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