Oil reached a 2016 high above $43 a barrel on Tuesday, supported by hopes that an upcoming meeting of oil producers will agree steps to tackle a supply glut, and by a weak U.S. dollar and further signs of strong demand in China, Reuters reported.
Brent crude LCOc1 was up 50 cents at $43.33 a barrel at 0842 GMT and earlier in the session reached a 2016 high of $43.53. U.S. crude CLc1 gained 39 cents to $40.75 a barrel, according to Reuters.
”The weak dollar is one important reason,” said Eugen Weinberg of Commerzbank.
”Also, the fact that we are above $40 and at multi-month highs is also contributing to the price increase as it is prompting some speculative buying,” he said.
As reported earlier, many members of the Organization of the Petroleum Exporting Countries and outside producers, such as Russia, are meeting in Doha, Qatar, on Sunday to discuss freezing output.
Crude gained a boost last week after a surprise decline in U.S. inventories from a record high. But this week`s U.S. supply reports are expected to show an increase in stocks of 2.8 million barrels, Reuters writes.
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