Oil Futures Hit Session Highs as Dollar Eases
Oil futures gained into midday Tuesday in Asia, benefiting from modest declines in the dollar and building on sharp overnight gains.
--After logging their biggest dollar gains of 2017 in rising more than 3% overnight, November Nymex light, sweet crude on the New York Mercantile Exchange was recently up 0.3% at $52.35 a barrel in the Globex trading session. ICE Brent futures rose 0.8% to $59.48.
--Although Friday's meeting led by the Organization of the Petroleum Exporting Countries didn't result in an extension to current production caps, a statement on higher compliance levels and indications by members that they would be willing to extend the deal through 2018 has further boosted market sentiment.
--Also propping up oil, which has seen Brent hit its best levels since mid-2015, is potential supply disruptions due to Kurdistan independence vote in Iraq and tensions between Iran and the U.S. Still, higher prices could easily bring about more U.S. oil output, analysts says, puncturing the rally.
Write to Biman Mukherji at biman.mukherji@dowjones.com
(END) Dow Jones Newswires
September 26, 2017 00:41 ET (04:41 GMT)