The United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, increased 2.1% and the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, rose 2.0% on Tuesday as WTI futures added 2.9% to $41.0 per barrel and Brent futures were up 2.3% to $43.9 per barrel.
The U.S. Dollar Index, which tracks the movement of the USD against a group of developed market currencies, dipped 0.5% to 94.0 Tuesday, a 10-month low – a weaker greenback makes USD-denominated commodities like oil cheaper for foreign buyers.
[related_stories]The labor stop in Kuwait cut daily output by as much as 1.7 million barrels and entered its third day, reports Mark Shenk for Bloomberg.
“Having a strike in one of the the most stable, better-run producers comes as a big surprise,” Francisco Blanch, head of commodities at Bank of America Merrill Lynch, told Bloomberg. “The market viewed the sell off as a buying opportunity. The market is moving from a surplus to a deficit in the second half of the year.”
SPDR Oil & Gas Equipment & Services ETF