Oil prices rise on softer US dollar, supply woes

Oil prices climbed on Tuesday, bolstered by a weaker US dollar and supply woes, although gains were capped by the spectre of lower fuel demand from China as it persists with its stringent zero-Covid policy.
Brent crude futures rose 82 cents, or 0.9 per cent, to $92.44 per barrel by 0643 GMT, while US West Texas Intermediate (WTI) crude futures gained 86 cents, or 1pc, to $86.32 per barrel. The US dollar index – which measures the greenback against six major peers including sterling – sagged to its lowest since Oct 6. A weaker dollar makes oil cheaper for buyers holding other currencies, making them more likely to make purchases.
Following the steep production cut agreed on by Opec+ – the Organisation of the Production Exporting Countries (Opec) and its allies, including Russia – earlier this month, investors have been seen increasing their long positions in futures, ANZ Research analysts said in a note. Opec+ member states have been lining up to endorse the cut to the output target after the White House accused Riyadh of coercing some other nations into supporting the move.-PNP