Investing.com – Crude oil futures extended gains on Tuesday, climbing to a two-day high as prices were supported by a weaker U.S. dollar, while investors awaited further developments in regards to Greece’s sovereign debt crisis.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in August traded at USD91.50 a barrel during U.S. morning trade, jumping 0.8%.
It earlier rose to USD92.17 a barrel, the highest price since June 24.
The U.S. dollar weakened against the euro after European Central Bank President Jean-Claude Trichet said the bank was in “strong vigilance mode,” pointing towards a possible interest rate hike next week.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.26% to trade at 75.58.
Dollar-denominated oil futures contracts tend to fall when the dollar rises, as this makes oil more expensive for buyers in other currencies.
Meanwhile, riots ensued in Athens ahead of parliament’s vote Wednesday on the EUR28.4 billion, five-year austerity package. Approval is necessary to secure the release of additional bailout loans needed to avert a sovereign debt default.
According to a Reuters report, German banks have agreed to use a French proposal to reinvest proceeds from maturing Greek bonds into new bonds as a basis for negotiating private sector participation in a Greek debt rollover.
Global financial service provider Barclays said in a report earlier that, “Sovereign debt concerns and macroeconomic unease are driving action in the oil market, overshadowing underlying fundamentals.”
Markets were awaiting fresh information on U.S. stockpiles of crude and refined products.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show stockpiles declined by 1.5 million barrels last week to 362.3 million barrels, a two-month low.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery rallied 1.3% to trade at USD107.91 a barrel, up USD16.41 on its U.S. counterpart.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in August traded at USD91.50 a barrel during U.S. morning trade, jumping 0.8%.
It earlier rose to USD92.17 a barrel, the highest price since June 24.
The U.S. dollar weakened against the euro after European Central Bank President Jean-Claude Trichet said the bank was in “strong vigilance mode,” pointing towards a possible interest rate hike next week.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.26% to trade at 75.58.
Dollar-denominated oil futures contracts tend to fall when the dollar rises, as this makes oil more expensive for buyers in other currencies.
Meanwhile, riots ensued in Athens ahead of parliament’s vote Wednesday on the EUR28.4 billion, five-year austerity package. Approval is necessary to secure the release of additional bailout loans needed to avert a sovereign debt default.
According to a Reuters report, German banks have agreed to use a French proposal to reinvest proceeds from maturing Greek bonds into new bonds as a basis for negotiating private sector participation in a Greek debt rollover.
Global financial service provider Barclays said in a report earlier that, “Sovereign debt concerns and macroeconomic unease are driving action in the oil market, overshadowing underlying fundamentals.”
Markets were awaiting fresh information on U.S. stockpiles of crude and refined products.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show stockpiles declined by 1.5 million barrels last week to 362.3 million barrels, a two-month low.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery rallied 1.3% to trade at USD107.91 a barrel, up USD16.41 on its U.S. counterpart.