Oil futures rose Tuesday, finding support as concerns around the supply outlook moved back into focus and the U.S. dollar continued its pullback from multidecade highs.
West Texas Intermediate crude for October delivery
rose $1.28, or 1.5%, to $89.06 a barrel on the New York Mercantile Exchange.
November Brent crude
the global benchmark was up $1.31, or 1.4%, at $95.31 a barrel on ICE Futures Europe.
Back on Nymex, October gasoline
jumped 2.5% to $2.505 a gallon, while October heating oil
was up 0.9% at $3.636 a gallon.
October natural gas
rose 0.8% to $8.313 per million British thermal units.
Crude oil futures have recovered after sinking last week to their lowest since January.
A more positive tone in financial markets, with U.S. equities last week ending a stretch of three straight weekly declines, and a weaker U.S. dollar, which has seen the ICE U.S. Dollar Index
continue to pull back from a 20-year high, is providing support, wrote commodity analysts at Commerzbank, in a note.
Also, U.S. Secretary of State Antony Blinken has joined France, the U.K. and Germany in expressing skepticism over the prospects of reinstating Iran’s nuclear pact soon, the analysts said, reducing the chances of more Iranian oil supply.
Meanwhile, investors were also paying attention to disappointing export figures from a number of producers. Citing data from Petro-Logistics, Commerzbank said Nigeria’s oil exports have fallen by half in three years. Kazakhstan exports were set to fall significantly next month to a six-year low, he said, citing loading data analyzed by Bloomberg.
The analysts, however, expresed doubt that market trends have turned upward “in any lasting fashion.”
If the International Energy Agency, in its monthly report on Wednesday, warns of considerable oversupply on the oil market, “sentiment could quickly shift again: in this case the market would probably test whether OPEC+ is really willing to defend higher oil prices by cutting production,” they wrote.
The Organization of the Petroleum Exporting Countries was scheduled to release its monthly report Tuesday morning.