Oil prices rise on weak dollar, oil prices

Oil prices rise on weak dollar, oil prices

Reuters -- Oil prices grew in early Asian trade on Tuesday as a weaker U.S. dollar lent support, although rising shale production and fears that stubborn inflation could lead to limited gains for the world economy.

By 1:20 GMT, Brent crude futures rose 9 cents or 0.1 per cent to $91.71 per barrel, while the U.S. West Texas Intermediate WTI crude futures gained 6 cents or 0.1 per cent to $85.52 per barrel.

After Britain's new finance minister Jeremy Hunt axed much of the government's so-called mini-budget lifting risk appetite, the dollar fell against a basket of major currencies.

The dollar index was down 0.82 per cent against a basket of currencies to 112.11. Rising shale output has helped to ease an oil supply crunch and capped price gains.

The Energy Information Administration said that the Permian Basin of Texas and New Mexico, the biggest U.S. shale oil basin, is projected to increase by about 50,000 barrels per day bpd to a record 5.453 million barrels per day this month.

Expectations that China will keep with loose monetary policy to help its economy that is hampered by COVID 19 restrictions has also lent support to oil prices. The country's central bank rolled over maturing medium-term policy loans on Monday, while keeping its key interest rate unchanged for a second month.

OPEC member states have endorsed the drastic cut to its output target this month, after the White House accused Riyadh of coercing some other nations into supporting the move.