Oil prices rise with Libya disruption but upside capped
Oil prices rose on Tuesday thanks to a weakened dollar, supply disruption in Libya and the latest comments from officials suggesting OPEC could extend its deal cutting global production.
But crude was weighed down by a resurgence in U.S. shale oil production and the expectation that inventories in the country would once again build, illustrating the persistent global supply overhang that has depressed prices for three years.
Prices for front-month Brent crude futures LCOc1, the international benchmark for oil, gained 36 cents to $51.11 per barrel by 1105 GMT (7:05 a.m. ET). West Texas Intermediate (WTI)futures CLc1, the U.S. benchmark, were up 38 cents at $48.11 a barrel.
Brent rebounded from testing a support of $50 a barrel on Monday and was underpinned by a weak dollar, which can attract investors to safer commodity markets while making oil cheaper for countries using other currencies.
Written by Sabina Zawadzki