Crude oil prices climbed higher on Tuesday, lifting the most active oil futures contract to a positive close for the first time in three days.
The dollar’s decline after data showed a drop in U.S. retail sales and a dip in industrial production in the month of June, supported oil prices.
West Texas Intermediate Crude oil futures for August ended higher by $1.60 or about 2.2% at $75.75 a barrel.
Brent crude futures were up $1.06 or about 1.35% at $79.56 a barrel.
Expectations of an end to the Fed’s rate hikes and Goldman Sachs revising down the odds of a recession in the U.S. supported the rebound. Resumption of supplies from Libya as well as hopes of stimulus from China also supported the rebound.
“Crude prices are steadying here on expectations that the oil market will remain tight as Russian shipments drop and as China prepares to provide more support to households. With Russian flows falling to a six-month low, expectations are growing that OPEC+ will keep this market tight throughout the summer,” says Edward Moya, Senior Market Analyst at OANDA.
“Speculation of a Q3 RRR cut from China should also keep the oil market supported as that should imply China’s economy will only get better, which should be good news for the crude demand outlook going forward,” Moya adds.
Traders now look ahead to weekly oil reports from the American Petroleum Institute (API) and the Energy Information Administration (EIA). The API’s data is due later today, while EIA’s report is due Wednesday morning.
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