Oil advanced for a third day after the US reported record exports of crude and fuel, bolstering the demand outlook, and as a softer dollar made commodities more attractive.
West Texas Intermediate climbed toward $88 a barrel after gaining almost 4 per cent over the prior two sessions. Total US petroleum exports hit 11.4 million barrels a day last week, government data showed. The surge came with domestic fuel inventories at historic seasonal lows, highlighting a tightening supply outlook.
The weaker dollar also helped buoy crude. A Bloomberg gauge of the greenback — which hit a record last month — has dropped to a three-week low, making raw materials priced in the US currency cheaper for overseas buyers.
Rebound
After racking up four consecutive monthly losses as concerns about a global slowdown gained traction, crude has rebounded in October after the Organisation of Petroleum Exporting Countries (OPEC) and its allies announced a major output cut.
Investors have also been gauging the likely impact of plans by the European Union and US to punish Moscow further for its invasion of Ukraine, including a proposal to cap prices.
US officials have been forced to rework the price-cap plan ahead of its implementation this quarter, according to people familiar with the matter.
Instead of strangling the Kremlin's oil revenues by imposing a strict lid on prices, the US and EU are likely to settle for a more loosely policed limit at a higher price than once envisioned.
