Oil holds near three-month high on signs of tightening supply
Oil prices were little changed on Tuesday, trading near a three-month high reached on Monday, on signs of tightening global supply, as producers implement output cuts, and strong demand in the United States, the world's biggest fuel consumer, News.Az reports citing Reuters.
Brent crude futures for October were at $85.25 a barrel at 0402 GMT, down 18 cents or 0.2% lower from its close. Front-month Brent settled at its highest since April 13 on Monday.
U.S. West Texas Intermediate crude was at $81.64 a barrel, down 0.2% or 16 cents from the previous session's settlement, which was its highest since April 14.
"Oil prices may face a correction risk as the markets may have been overbought in the past month. However, a softened U.S. dollar and China's policy optimism may continue to provide bullish factors to crude futures," said Tina Teng, an analyst at CMC Markets, as a weaker greenback makes dollar-priced oil cheaper for holders of other currencies.
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