Oil prices rebound late on Tuesday, after a drop at early trading with Brent hitting four-month highs on a rally inspired by Organisation of Petroleum Exporting Countries plans to tighten output.
Earlier, oil prices had dropped due to a surging dollar, which weighed on greenback-denominated commodities.
Weaker equity prices on Wall Street also limited oil’s run higher.
Brent crude was up 13 cents at $51.02 a barrel at early trading, but rose to $51.37 as the session peak its highest since June 10.
US West Texas Intermediate crude rose to $48.78 a barrel, but the session high for WTI was $49.13, its highest since July 5.
Stig Rasmussen, a senior proprietary trader at Danske Commodities in Aarhus, Denmark, said: “The OPEC deal looks more and more like hot air but oils still very technically driven.
“For Brent, the next target is $52.86. I imagine at that point, shale oil companies will be hedging bigger volumes for one to two years ahead.”
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