SINGAPORE: Oil prices rose to over one-month highs on Tuesday as a weaker US dollar supported commodities and on expectations that crude inventories fell in the United States, the world’s biggest oil user, though rising coronavirus cases in Asia capped gains.
Brent crude futures for June delivery had risen by 66 cents, or 1 per cent, to $67.71 a barrel as at 0642 GMT after earlier hitting a session high of $67.97.
US West Texas Intermediate (WTI) crude futures for May delivery, which expire on Tuesday, were up 70 cents, or 1.1 per cent, at $64.08 barrel. The more-active June contract was at $64.02, up 0.9 per cent, or 59 cents.
Buyers using other currencies pay less for dollar-denominated oil when the greenback weakens.
“US dollar weakness continues to offer support to the commodities complex ... despite concerns over oil demand in certain regions,” ING Economics said in a note.
The dollar index slumped to a six-week low against other major currencies on Monday following a plunge in US Treasury yields last week and remained near the low at 91.055 on Tuesday.
Also supporting prices, US crude oil and distillate stockpiles were expected to have dropped last week, while gasoline inventories likely rose, a preliminary Reuters poll showed on Monday. — Reuters
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