Oil prices rose on Tuesday, lifted by weakness of the dollar and political unrest in key crude producers Iran and Nigeria, analysts said.
New York’s main futures contract, light sweet crude for delivery in July, gained 83 cents to $71,45 a barrel.
Brent North Sea crude for August delivery rose 92 cents to $71,16. The July contract had expired on Monday.
Prices advanced as the European single currency jumped against the dollar on news that investors’ confidence in the German economy rose for an eighth month running, traders said.
A struggling greenback tends to boost demand for dollar-priced crude as the commodity becomes cheaper for buyers holding stronger currencies.
“It is still important to keep watching out for the dollar,” said analyst Andrey Kryuchenkov at VTB Capital in London.
“For now … [the oil market] could remain quiet until Wednesday afternoon when US energy data is released,” he added.
The weekly report on American energy reserves is a key factor because the United States is the biggest oil-consuming nation, followed by China.
Meanwhile, unrest in Iran and Nigeria remained key focus points for traders, according to Commerzbank commodities analyst Eugen Weinberg.
“In addition to China’s oil appetite, coupled with … a weaker US dollar, the geopolitical risks are the underlying drivers,” Weinberg said.
“Political unrest following the presidential elections in Iran and bombing attacks on oil plants in Nigeria represent an explosive mix for the oil market.” — AFP