SULAIMANI (ESTA) — Oil prices rose on Tuesday as a drop in the U.S. dollar made crude a more attractive buy.
Brent crude futures jumped 36 cents to $62.51 a barrel at 0533 GMT, after falling 4.2% on Monday. U.S. West Texas Intermediate (WTI) crude futures rose 75 cents to $59.09 per barrel, after sliding 4.6% on Monday.
“The weaker U.S. dollar is a contributor, and increasing [U.S.] growth confidence helps,” Michael McCarthy, chief market strategist at CMC Markets and Stockbroking, told Reuters.
The dollar fell 0.4% against a basket of currencies on Monday and dipped a bit further on Tuesday, according to Reuters.
Oil prices typically rise against a falling dollar, as weaker greenback makes dollar-priced oil cheaper for those holding other currencies.
Meanwhile, England is set to ease coronavirus restrictions on April 12, with the opening of businesses including all shops, gyms, hair salons and outdoor hospitality areas.
That helped offset worries about the agreement last week by OPEC and allies, known as OPEC+, to bring back 350,000 barrels per day (bpd) of supply in May, another 350,000 bpd in June and a further 400,000 bpd or so in July.
“Rising virus cases in countries such as India and the European Union are keeping traders cautious, with any renewed restrictions likely to weigh on demand,” Reuters quoted ANZ Research as saying.