$Rex Intl (5WH.SG)$$RH PetroGas (T13.SG)$$Dyna-Mac (NO4.SG)$...
The push and pull in crude prices continues with Tue's rally triggered by the dollar's drop to two-month lows, optimism ahead of the U.S. government's weekly oil consumption-supply report and growing expectations of more stimulus in China.
"It's the normal summer demand for fuels, exacerbated somewhat by the rhetoric of producers vowing to cut output to make supply even tighter than normal at this time of year," said John Kilduff, partner at Again Capital.
"On top of that, you have the dollar's collapse making oil an even more attractive buy. Thus, the market volatility where one day it drops on rate hike fears and the next day it jumps on demand/dollar boost."
Brent crude finished the U.S. trading session up 2.2% at USD79.40, after Mon's 1% slide that came after last week's 4.8% rally. WTI crude settled up 2.5% at USD74.83. In the prior session, it slid 1.2% after last week's gain of 4.6%.
The Dollar Index, which pits the U.S. dollar against six major currencies, fell to 101.34, its lowest since the first week of May. A weaker dollar makes commodities priced in the greenback, such as oil, more attractive to buyers using other currencies.
The dollar tumbled after several Fed officials said on Mon the central bank would likely need to raise interest rates further to bring down inflation but the end to its current monetary policy tightening cycle was getting close.
The rally in crude also came ahead of Wed's release of the CPI report for June, which economists said was likely to have grown 3.1% on the year.
The Fed's favorite price indicator, the Personal Consumption Expenditures, or PCE Index, meanwhile, grew by 3.8% in May.
Still, policy-makers at the central bank seemed unanimous in their thinking that the Fed's rate hike cycle was nearing its end, though rate cuts - which is what risk takers really want, will some time to materialize.
Market participants were also on the lookout for U.S. weekly oil inventory data, due after market settlement from API.The API will release a snapshot of closing balances on U.S. crude, gasoline and distillates for the week ended July 7. The numbers serve as a precursor to official inventory data on the same due from the EIA on Wed.
China's new bank loans jumped more than expected in June, data from the People's Bank of China showed on Tue, with Beijing attempting to spur demand after three years of COVID curbs.
Additionally, China's central bank on Mon extended until the end of 2024 some policies in a Nov rescue package to shore up the property sector, and traders are expecting further stimulus measures to boost the world's second largest economy, which is struggling to recover from the ravages of the COVID pandemic.
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