U.S. oil futures scored a fourth straight gain on Tuesday, with traders bidding up crude a day ahead of the conclusion of a Federal Reserve policy meeting that's expected to deliver a quarter percentage point interest rate cut.
The resumption of U.S.-China trade talks were also viewed as a positive, despite downbeat comments from President Donald Trump.
Crude “is bid on the start of trade talks, which could serve as a positive demand indicator, and the expected Fed rate cut on Wednesday, which should weaken the dollar, with the reverse correlation supporting” oil, said Robert Yawger, director of energy at Mizuho Securities U.S.A., in a note.
West Texas Intermediate crude for September delivery on the New York Mercantile Exchange rose $1.18, or 2.1%, to end at $58.05 a barrel. The U.S. benchmark rose 1.2% on Monday. If Tuesday’s gain holds, it would mark the fourth straight rise for WTI futures.
Meanwhile, October Brent crude the global benchmark, rose $1.01 to $64.63 a barrel on the ICE Europe exchange, a gain of 1.6%.
Source : Marketwatch