Oil prices rose more than one per cent on Tuesday on a weak U.S. dollar and news that the world’s top producers cut production this month more than forecasters had expected.
The Organization of the Petroleum Exporting Countries (OPEC) in January achieved 82 percent compliance with its promised production cuts, well above most market forecasts.
“This is very high, a good number,” an OPEC source said of the January compliance estimate.
The dollar was down by 0.9 percent versus a basket of currencies, boosting greenback-denominated oil.
The currency tumbled against rivals on Tuesday and was on course for its worst decline in three decades after comments from U.S. President Donald Trump and his trade adviser.
According to Voice of Nigeria Brent crude oil for March settled up 47 cents a barrel at $55.70. Brent for April delivery was up as much as 2 percent at the session high. U.S. light crude closed the session up 18 cents at $52.81.
After an initial price rise on hopes that markets would rebalance quickly, Brent and U.S. crude futures have been pressured by evidence of higher U.S. oil drilling and forecasts of a rebound in shale production.