Forexpros – Crude oil futures rose to a three-week high on Tuesday, as gains in European equities markets and concerns over potential supply threats in the Middle East supported prices.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at USD92.53 a barrel ahead of the U.S. open, up 0.36%. It was the highest price level since July 20.
Risk appetite sharpened as hopes for imminent action from the European Central Bank to stem the debt crisis in the euro zone buoyed investor confidence and dampened demand for the safe haven dollar.
A weaker dollar can lead to gains in oil, as it makes the commodity less expensive to traders paying with foreign currencies.
Oil prices were supported by ongoing unrest in the Middle East, amid concerns over potential threats to oil supply from the region.
Syria’s prime minister fled the country on Monday as intense fighting continued, while a pipeline explosion halted Iraqi crude exports to Turkey.
Investors were looking ahead to a report from the American Petroleum Institute, an industry group, on U.S. crude oil stockpiles later in the day.
On the London based ICE Futures Exchange, Brent oil futures for September delivery were up 0.72% to trade at USD110.33 a barrel, with the spread between the Brent and crude contracts standing at USD17.08.
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