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Oil prices climb on weaker dollar
[NEW YORK] Global oil prices climbed on Tuesday, getting a boost from a weaker dollar as traders awaited the latest US crude-oil inventories report.
US benchmark West Texas Intermediate for June delivery jumped US$1.50 to close at US$60.75 a barrel on the New York Mercantile Exchange.
Brent North Sea crude for June delivery, a global oil benchmark, advanced to $66.86 in London, up US$1.95 from Monday's settlement.
Both contracts had dipped Monday on persistent global oversupply worries.
"Crude oil prices rebounded strongly... supported by a softer US dollar, while investors remained cautious ahead of the release of the weekly oil inventories reports," said Sucden brokerage analyst Myrto Sokou.
The dollar was trading against the euro at US$1.1221 in the afternoon, down from US$1.1154 late Monday amid a global bond market sell-off. A weaker greenback tends to make dollar-priced commodities like crude oil more attractive to buyers.
The oil market awaited Wednesday's weekly report on US petroleum inventories from the US Department of Energy for clues about demand in the world's largest consumer of crude oil.
Last week the DoE unexpectedly reported the first decline in commercial crude-oil stockpiles in 16 weeks, but still stockpiles, at 487.0 million barrels, remained at their highest level on record for that time of year.
Analysts are expecting another decline in Wednesday's report, with the consensus estimate of a fall of 500,000 barrels in the week ending May 8, according to a Bloomberg News survey.