London
Oil prices rose on Tuesday, reversing overnight losses against the backdrop of an equities bull run and a sliding US dollar.
Brent crude futures climbed $0.4 to $45.68 a barrel by 0930 GMT. US West Texas Intermediate crude futures also rose $0.4, hitting $43.01 a barrel. The dollar was at its lowest in more than two years against a basket of currencies, pressured by the US Federal Reserve’s loosening of inflation policy last week, making dollar-priced commodities cheaper for global buyers.
Strong Chinese manufacturing data also lifted oil prices, said Jeffrey Halley, a senior market analyst at Oanda.
The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) showed China’s factory activity expanded at the fastest pace in nearly a decade last month, bolstered by the first increase in new export orders this year. Bulls also pushed up equities, with the MSCI world equity index close to a record peak on Tuesday. Yet oil, which often moves in tandem with equities, remains reined in by demand concerns.
