Oil futures are up over 1% on Tuesday as the risk of supply chain disruptions and a weaker dollar add fuel to the flame.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ukraine has stepped up its attacks on Russian oil refineries, with sources saying that one of the country’s largest facilities has halted processing. Russia is one of the largest producers of oil in the world. “Meanwhile, there are suggestions that three pumping stations pushing crude to Ust-Luga were also targeted,” wrote analysts at ING.
Soft Dollar Supports Oil Prices
Furthermore, the dollar is at its lowest level since July, giving another boost to oil. Since oil is priced and traded in U.S. dollars, a weaker dollar allows buyers with alternative currencies to purchase more oil with the same local currency amount.
A widely expected rate cut is also contributing to the weakness in the dollar. This combination of a softer dollar and expectations of lower interest rates is adding upward pressure to oil prices.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.