Oil Prices Flat- U.S. Production Data
Oil prices were flat on Tuesday, bouncing back from an early slide as the dollar fell to a one-week low, which encouraged buying of dollar-denominated crude at session lows.
Global benchmark Brent futures hit a two-month low early, but by 2:02 p.m. EST (1902 GMT), Brent rose 11 cents to $62.70 a barrel. U.S. West Texas Intermediate crude futures were down 9 cents at $59.20 a barrel.
The U.S. dollar hit a one-week low, which can attract investors to oil by making crude cheaper for buyers using other currencies.
“We have chipped away at crude losses today, and you could easily say it’s a function of a weak dollar,” said Bob Yawger, director of energy futures at Mizuho.
Since the stock market began falling sharply early this month, oil prices have wiped away the year’s gains amid a volatile stock market.
“There are a lot of people who are praying that last week’s collapse in crude…was some anomaly, and that as soon as the stock market recovered, the crude market would recover with it,” said Walter Zimmerman, chief technical analyst at United-ICAP.
“So far its looking a little ominous but WTI has not broken down,” Zimmerman said, adding the contract would have to decline more to enter a bear market.