Oil Inches Up on Supply Concerns and Weaker Dollar
Oil prices ticked up on Tuesday on concerns about supply, with Iran set to reject a US nuclear deal proposal that would be key to easing sanctions on the major oil producer, while weakness in the dollar also supported prices.
Brent crude futures gained 21 cents, or 0.32%, to $64.84 a barrel by 0437 GMT. US West Texas Intermediate crude was up 27 cents, or 0.43%, to $62.79 a barrel, after rising about 1% earlier in the session.
The oil market surged higher on Monday as rising geopolitical risks and a supply hike from OPEC+ that fell short of expectations provided a boost, said ING analysts in a note.
“The strength continued into early morning trading today,” ING said on Tuesday.
Both contracts gained nearly 3% in the previous session after the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, agreed to keep output increases in July at 411,000 barrels per day, which was less than some in the market had feared and the same hike as the previous two months.
“With the worst fears not panning out, investors unwound their bearish positions they had built prior to the weekend’s meeting,” ANZ analysts said in a note.
