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Oil futures traded higher Tuesday, kicking off September on a positive note, as traders continued to take cues from a falling U.S. dollar.
West Texas Intermediate crude for October delivery CL.1, +0.96% CLV20, +0.96% on the New York Mercantile Exchange, while November Brent crude BRNX20, +1.17%, the global benchmark, on ICE Futures Europe.
“Dollar weakness has bid the market this morning,” said Robert Yawger, director of energy at Mizuho Securities, in a note.
The ICE U.S. Dollar Index DXY, -0.26%, a measure of the currency against a basket of six major rivals, was down 0.3%, falling to a more-than-two-year low. A weaker dollar makes commodities priced in the greenback cheaper to users of other currencies.
Oil futures lost ground Monday but WTI logged its fourth straight monthly rise and Brent rose for a fifth straight month.
Analysts said optimism over a recovery in the global economy from the COVID-19 pandemic continued to provide support.
Oil, however, “will need better data from the U.S. and Europe for prices to break out higher. Up until now, their recoveries are showing signs of stalling and that suggest more support will continue to get pumped into their respective economies,” said Edward Moya, senior market analyst at Oanda, in a note.
In other energy trading, October gasoline RBV20, +1.18% rose 1.5% to $1.2322 a gallon, while October heating oil HOV20, +0.78% was up 1.1% at $1.2307 a gallon.
October natural-gas futures NGV20, -2.43% fell 0.7% to $2.612 per million British thermal units.
