Oil rises on OPEC+ cuts, weaker dollar

Singapore, July 11 (BNA): Oil prices rose today, Tuesday, to recoup some of the losses incurred in the previous session.

Brent crude futures rose 31 cents, or 0.4 percent, to $78 a barrel by 0626 GMT, and US West Texas Intermediate crude rose 35 cents, or 0.5 percent, to $73.34.

Reuters reports that a weak dollar makes crude oil cheaper for holders of other currencies and often boosts demand for oil.

“Oil has found a floor and the only thing that could break that is if inflation in the US gets too hot and the Fed is forced to tighten this economy in a recession,” said Edward Moya, an analyst at OANDA.

While central bank officials have said that the US Federal Reserve will likely need to raise interest rates further to bring down inflation, markets were comforted by indications that officials also believe the current monetary policy tightening cycle is coming to an end.

Tina Ting, an analyst at CMC Markets, said that China’s decision to boost support for the real estate sector with the aim of boosting confidence was helping higher oil prices.

Teng said that the data on Chinese yuan new loans, trade balance and US inflation will be watched closely by the markets in the coming days.

Traders will also look forward to US crude inventories data due later on Tuesday from the American Petroleum Institute. Analysts expect to build 200 thousand barrels.

ZH