Investing.com - Crude oil futures were higher for a second day on Tuesday, following the release of softer-than-expected Chinese inflation data.
Oil prices found further support from weakness in the U.S. dollar, as dollar-priced commodities become less expensive to investors holding other currencies when the greenback drops.
On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD93.69 a barrel during European morning trade, up 0.35% on the day.
New York-traded oil prices rose by as much as 0.5% earlier in the session to hit a daily high of USD93.81 a barrel, the strongest level since April 4.
Official data released earlier showed that consumer prices in China rose 2.1% in March from a year earlier, below expectations for a 2.5% increase and slowing sharply from a 3.2% rate of increase in February.
The slower-than-expected rise in inflation was likely to reduce pressure on policy makers in Beijing to tighten monetary policy as the country recovers from a slowdown.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile, the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 82.75.
Oil prices typically strengthen when the U.S. currency weakens as the dollar-priced commodity becomes cheaper for holders of other currencies.
Market players now looked ahead to the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 1.6 million barrels.
Oil prices came under heavy selling pressure last week after the U.S. Energy Information Administration said crude supplies rose to the highest level since 1990, while oil production hit the highest level since 1992.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery added 0.4% to trade at USD105.06 a barrel, with the spread between the Brent and crude contracts standing at USD11.37 a barrel, the lowest gap since June.
The spread between the two contracts continued to trade near a nine-month low, due to an improving production outlook in the North Sea and amid growing concerns over the euro zone’s economic outlook.
Oil prices found further support from weakness in the U.S. dollar, as dollar-priced commodities become less expensive to investors holding other currencies when the greenback drops.
On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD93.69 a barrel during European morning trade, up 0.35% on the day.
New York-traded oil prices rose by as much as 0.5% earlier in the session to hit a daily high of USD93.81 a barrel, the strongest level since April 4.
Official data released earlier showed that consumer prices in China rose 2.1% in March from a year earlier, below expectations for a 2.5% increase and slowing sharply from a 3.2% rate of increase in February.
The slower-than-expected rise in inflation was likely to reduce pressure on policy makers in Beijing to tighten monetary policy as the country recovers from a slowdown.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile, the dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 82.75.
Oil prices typically strengthen when the U.S. currency weakens as the dollar-priced commodity becomes cheaper for holders of other currencies.
Market players now looked ahead to the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 1.6 million barrels.
Oil prices came under heavy selling pressure last week after the U.S. Energy Information Administration said crude supplies rose to the highest level since 1990, while oil production hit the highest level since 1992.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery added 0.4% to trade at USD105.06 a barrel, with the spread between the Brent and crude contracts standing at USD11.37 a barrel, the lowest gap since June.
The spread between the two contracts continued to trade near a nine-month low, due to an improving production outlook in the North Sea and amid growing concerns over the euro zone’s economic outlook.