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InstaForex - Official partner of Dragon Racing

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2021.01.1219:21:00UTC+00Oil Futures Settle Notably Higher

Crude oil prices moved higher on Tuesday, lifting the most actively traded oil futures contract to their best close in about 11 months.

A weak dollar and Saudi Arabia's decision to cut production in the next two months supported the commodity.

The dollar index fell to 90.05, after mostly moving around the flat line early on in the day. The index is currently at 90.10, down 0.4% from previous close.

West Texas Intermediate Crude oil futures for February ended up by $0.96 or about 1.8% at $53.21 a barrel.

Saudi Arabia said last week that it has decided to cut production by 1 million barrels a day in February and March.

Traders are looking ahead to weekly oil reports. While the American Petroleum Institute is scheduled to release its weekly report later today, the Energy Information Administration's data on U.S. crude inventories will be out Tuesday morning.

Markets expect crude inventories in the U.S. may have dropped by about 2.7 million barrels, extending its slide to a fifth straight week.

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