Oil prices rise on output freeze optimism

Oil prices rallied for a fourth straight session Tuesday, amid speculation that the talks of Organization of the Petroleum Exporting Countries (OPEC) next month could result in a crude output freeze.

The OPEC will probably revive talks on freezing oil output levels when it meets non-OPEC nations next month, Reuters reported Tuesday.

Meanwhile, oil prices were also supported by a weaker U.S. dollar, which made the dollar-denominated oil more attractive for holders of other currencies.

The U.S. dollar slumped against other major currencies Tuesday on dovish comments from a top Federal Reserve official. San Francisco Fed President John Williams said Monday the Fed should consider setting higher inflation targets.

The dollar index, which measures the greenback against six major peers, was down 0.87 percent at 94.799 in late trading Tuesday.

The West Texas Intermediate for September delivery added 0.84 U.S. dollar to settle at 46.58 dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery gained 0.88 dollar to close at 49.23 dollars a barrel on the London ICE Futures Exchange.

Source : XINHUA