Oil Prices Reach One-Week High as Dollar Weakens

Oil prices gained ground in American trade on Tuesday, marking the third consecutive day of gains and reaching a one-week high as the dollar weakened.

US crude is poised to trade above $80 a barrel again, supported by strong expectations that OPEC+ will extend its production cuts through the second half of 2024 at its upcoming meeting.

Prices:

US crude increased by 1% to $79.43 a barrel, with a session low of $78.54.

Brent crude rose by 0.8% to $83.49 a barrel, its highest in a week, with a session low of $82.79.

On Monday, US crude climbed by 1%, while Brent crude added 0.8%.

The Dollar:

The dollar index fell by 0.25% on Tuesday, heading for its third straight session of declines and hitting a two-week low of 104.34 against a basket of major currencies.

A weaker dollar supports commodities priced in the greenback, making them cheaper for holders of other currencies.

The decline follows fresh data as investors reassess the future path of US interest rates.

OPEC+:

OPEC+ is set to hold a virtual meeting on Sunday to review its production policies, with expectations to extend current production cuts for another six months until the end of the year.

Oil Prices Outlook:

Deutsche Bank has maintained its forecast for Brent prices at $83 a barrel in the second quarter and $88 a barrel in the second half of the year.