U.S. oil prices rise on weaker dollar, U.S. drilling in focus

U.S. oil climbed on Tuesday because the greenback weakened, however an increase in drilling process in the U.S. is likely to preserve a lid on prices.

U.S. West Texas Intermediate (WTI) crude futures CLc1 have been up 14 cents at $52.89 a barrel with the aid of 0023 GMT. Brent crude LCOc1 , the global benchmark for oil prices, was yet to start trading.

The dollar slumped to a seven-week low against a currency basket on Monday, weighed by way of concerns in regards to the early days of U.S. President Donald Trump's administration which have up to now been marred through protests, a protectionist inauguration speech and offended comments on Twitter. USD/

A weaker greenback makes greenback-priced commodities cheaper for importer maintaining different currencies.

"every other robust elevate in drilling rigs running within the U.S. took the gloss off the easier-than-anticipated adherence by OPEC to the agreed manufacturing cuts," ANZ mentioned in a record.

"President Trump's comments that the U.S. would end its dependence on imported oil also delivered to the unease out there."

U.S. drillers introduced essentially the most rigs in just about 4 years, information from vitality services firm Baker Hughes confirmed on Friday, extending an eight-month drilling restoration. oil production has risen with the aid of more than 6 percent on account that mid-2016, though it continues to be 7 % below the 2015 peak. it's again to levels seen in late 2014, when robust U.S. crude output contributed to a crash in oil prices.

the rise in U.S. manufacturing is offsetting plans to scale back output with the aid of the organization of the Petroleum Exporting international locations (OPEC) and different producers.

those nations have made a robust begin to lowering their oil output beneath the first such percent in more than a decade, energy ministers said on Sunday.

Iraq's oil minister mentioned on Monday that almost all oil majors working on its territory have been participating in oil output reductions agreed as part of the deal.

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