The prices of Petroleum stabilized on Tuesday, after recovering from an almost three-week low, receiving support from a dollar (USDBLR) weakened and data that showed that the demand for oil and derivatives in the USA increased in November.
The most active second-month Brent contract closed at $85.46 a barrel, up 96 cents or 1%, while US crude futures (WTI) closed at $78.87 a barrel, up 0. .97 dollars or 1.3%.
More volatility on the expiration day kept the first-month contract under pressure as traders closed positions, said Mizuho analyst Robert Yawger.
The first month’s contract closed at $84.49 a barrel, down $0.41.
During the session, first-month Brent futures and WTI futures hit their lowest levels in nearly three weeks as traders worried about the prospect of further interest rate hikes and plentiful flows of Russian crude.
First-month April Brent and WTI futures rose after the US Energy Information Administration said demand for US crude oil and petroleum products rose by 178,000 barrels per day (bpd) in November to 20.59 million bpd, the highest volume since August.
Crude oil benchmarks were also supported by a weaker US dollar, said UBS analyst Giovanni Staunovo. This makes dollar-denominated oil cheaper for foreign buyers.
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