Oil prices turned positive in volatile trading this evening, lifted by a slumping US dollar that offset the effect of weaker US consumer confidence and still bulging inventories.
A weak dollar can lift oil prices as it makes dollar-denominated crude oil less expensive for buyers using other currencies. Pressuring the dollar and signalling a still struggling economic recovery, US consumer confidence sagged in September to its lowest levels since February.
US crude rose 21 cents to $76.73 a barrel, while Brent crude rose 80 cents to $79.37.
Oil's earlier slip was pegged to expectations that inventory reports will show that US refined fuel stockpiles rose last week, even while crude stockpiles were expected to be slightly lower.
High crude stocks at the key Cushing, Oklahoma, hub, delivery point for US West Texas Intermediate benchmark crude, has helped put European benchmark Brent at an unusual premium to US crude futures.
