Oil prices traded mixed on Tuesday, as last week's gains bolstered the USA crude, while Brent prices declined through lower Asian stocks and a stronger dollar, although markets still remained supported by the supply curb.
US West Texas Intermediate crude for March delivery was up 46 cents at US$62.14 a barrel, after earlier gaining as much as 1.4 per cent to its highest since February 7.
A strengthening dollar, which hit a six-day high, however, weighed on oil prices.
In the Singapore market, oil dipped last Wednesday, squeezed by lingering oversupply including rising U.S. inventories and ample physical flows, though the prospect of Saudi output dropping in March, economic growth hopes and a weaker dollar all combined to cap losses.
The announcement of a long term alliance between oil producers led by Saudi Arabia and Russian Federation to be ratified by the end of this year is being sold as a safeguard against any wild market price upswings as well as a way to protect the market rebalance supposedly being achieved by the Organization of the Petroleum Exporting Countries' (OPEC) production cuts.
Brent crude, however, eased as a result of a dip in Asian stocks and a stronger dollar, which potentially curbs demand as it makes fuel more expensive for countries using other currencies. Brent is now trading at a premium of less than $3 compared to WTI, down from above $7 at the start of 2018.
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The US dollar is now trading at its lowest level in more than three years having lost two and a half per cent of its value against other currencies this year, pushing up the price of commodities including gold.
WTI crude futures CLc1 were at $59.06 a barrel, down 13 cents from their last settlement.
The American Petroleum Institute said last Tuesday that United States crude inventories rose by 3.9m barrels in the week to Feb 9, to 422.4m.
Futures fell 0.7 percent in London.
The most active USA crude futures contract for delivery in April settled up 24 cents at $61.79 a barrel.
Oil is struggling to regain the highs of January after a sell-off in global equities seeped into crude markets earlier this month. The VIX volatility index was up 21 percent in advance of the US open.