Oil extends advance as U.S. dollar slides before inflation data
BNN Bloomberg
Oil pushed higher for a fourth day as a weaker dollar offset global demand concerns, and progress toward an Iranian nuclear deal stalled.
West Texas Intermediate futures rose toward US$89 barrel, climbing for a fourth day. Should the US benchmark end higher on Tuesday that would be the longest run of gains since mid-May.
The dollar fell for a third session before US inflation figures due later. Economists expect a decline in the headline figure year-on-year, in part on cheaper gasoline. Nevertheless, traders still expect another large rate hike from the Fed next week, taking their cue from officials supporting that view.
Crude has recovered after hitting the lowest level since January earlier this month as investors fretted about global consumption, including in top importer China, where authorities are pressing on with harsh anti-virus restrictions. Still, after hitting a record last week, the dollar has eased, making commodities cheaper for overseas buyers.
