Oil goes up on weaker dollar; Libya output return weighs

Oil goes up

The prices of oil went up slightly on Tuesday due to a weaker dollar, though a recovery in Libyan production applied pressure on the market and rising U.S. drilling signaled the potential increased supply and capped price gains.

Futures contracts for the international benchmark for oil prices, Brent crude, went up 7 cents at $53.19 per barrel from the previous session.

The prices for U.S. West Texas Intermediate crude oil were trading up 7 cents at $53.19 per barrel.

Sydney-based Ayers Alliance chief investment officer, Jonathan Barratt said oil prices are expected to pick up on dollar weakness similar to gold.

"The range is $47 to $55 a barrel and we expect the top end to be tested," Barratt said.

Due to a support by a weaker dollar, the prices of gold reached a one-week high on Tuesday as investors looked for safe-haven assets due to concerns over geopolitical tensions.

Rising production continues to pressure the oil market despite the support from a weakening dollar.

"Crude oil prices fell as increased drilling in the United States and a rebound in Libyan output weighed on investor sentiment," according to ANZ bank in a note.

According to sources, after the state-owned National Oil Corp lifted a force majeure on loadings of Sharara oil from the Zawiya terminal in the west of the country, Libya has managed to increase its crude output on Monday.

Meanwhile, data from Baker Hughes, an energy services company, showed on Friday that U.S. drillers added rigs for an 11th week in a row last week, extending a 10-month drilling recovery.

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