Oil prices climb on weaker dollar, U.S. stocks drawdown

Oil prices climbed on Tuesday as a weaker dollar boosted commodities and on hopes that U.S. crude stockpiles dropped, but a surge in COVID-19 cases in Asia capped gains.

U.S. West Texas Intermediate crude futures for May, which expires on Tuesday gained 0.8%, or 53 cents, at $63/91 per barrel. The more active June contract rose 0.8%, or 50 cents, at $63.93 per barrel.

Brent crude futures for June contract climbed by 0.8%, or 54 cents, at $67.59 per barrel. As the dollar falls, buyers of oil using other currencies pay less for dollar-priced oil. 

Also boosting prices, U.S. crude oil and distillate inventories were expected to have fallen last week, while gasoline stocks likely surged.

Saudi Arabia’s crude oil exports dropped to their lowest in eight months in February. Meanwhile, rising coronavirus cases in India dampened optimism for global fuel demand recovery.