Meanwhile, in the U.S., the Energy Information Administration projected the shale oil industry production will fall for a tenth consecutive month in September.
Furthermore, the weakening U.S. dollar also helped bolster the oil market on Tuesday. The U.S. Dollar Index (DXY), which tracks the USD’s movement against a basket of major international currencies, dipped 0.9% to 94.8 after San Francisco Fed President John Williams argued that central banks might have to raise inflation targets, focus more on growth and back much looser fiscal policies, diminishing the likelihood of a September rate hike.
“The Williams paper yesterday was pretty dovish, so people are selling dollars. Dollar yields are lower pretty much across the curve since the release,” Citi strategist Josh O’Byrne told Reuters.
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United States Oil Fund