New York – Oil prices rebound late on Tuesday, after a drop at early trading with Brent hitting four-month highs on a rally inspired by OPEC plans to tighten output.
Earlier, oil prices had dropped due to a surging dollar, which weighed on greenback-denominated commodities.
Weaker equity prices on Wall Street also limited oil’s run higher.
Brent crude was up 13 cents at 51.02 dollars a barrel at early trading but rose to 51.37 dollars
as the session peak its highest since June 10.
U.S. West Texas Intermediate (WTI) crude rose to 48.78 dollars a barrel but the session high
for WTI was 49.13 dollars, its highest since July 5.
Stig Rasmussen, a senior proprietary trader at Danske Commodities in Aarhus, Denmark, said “the OPEC deal looks more and more like hot air but oils still very technically driven.
“For Brent, the next target is 52.86 dollars. I imagine at that point, shale oil companies will
be hedging bigger volumes for 1-2 years ahead.”
