NEW YORK: Oil prices rose about 1%, with global benchmark Brent settling at a two-week high in volatile trade yesterday (July 19) as traders worried about tight supplies and a weaker dollar.

Brent futures rose US$1.08, or 1.0%, to settle at US$107.35 (RM477.65) a barrel. US West Texas Intermediate (WTI) crude rose US$1.62, or 1.6%, to settle at US$104.22 (RM463.2).

Brent posted its highest close since July 4 and WTI its highest since July 8. At one point during the volatile session, both benchmarks were down around US$2 a barrel.

“Crude oil has staged an incredible turnaround,” said Robert Yawger, executive director of energy futures at Mizuho.

“There was no big red bullish headline to greenlight the rally, but the combination of beaten down open interest and low trade volume will often encourage wild price swings,” he said.

The US dollar slid to a two-week low against a basket of other currencies, making oil less expensive for buyers using other currencies.

Oil prices have whipsawed, supported by supply fears due to Western sanctions on Russia, but pressured by global central bank efforts to tame inflation which stoked fears that a potential recession could cut energy demand.

On Friday, open interest in New York Mercantile Exchange futures fell to the lowest since September 2015 as investors cut risky assets like commodities, worried that the Federal Reserve will keep raising US interest rates.

The US-Canada Keystone pipeline was operating at reduced capacity on Monday after a pump station was shut.

Libya’s new National Oil Corp chief Farhat Bengdara rejected challenges to his appointment and work resumed at some shuttered fields and ports.

In the United States, expectations for an increase in crude inventories weighed on prices. Analysts polled by Reuters forecast crude inventories rose by 1.4 million barrels last week.

Early in the session, oil prices fell on weak economic data from around the world.