Oil prices extend recovery on higher fuel demand

Oil prices rose in European trade off five-week lows for another session as fuel demand increases in the summer in major consumers. 

Prices are also supported by dollar's decline against major rivals, underpinning demand on commodities and dollar-denominated metals.

Prices

US crude prices rose 1.9% to $110.77 a barrel, while Brent rose 1.8% to $116.21 a barrel.

US crude rose 0.25% on Monday, as Brent added 0.9% off five-week lows at 111.58. 

Demand

Most energy experts expect fuel demand to improve as China reopens major cities while summer vacations spread worldwide.

The Dollar

The dollar index fell 0.5% on Tuesday for another session on profit-taking off 20-year highs against major rivals. 

The dollar lost ground amid doubts the Fed might ever hike rates by 75 basis points once more this year.

Iranian Supplies

A United Nations report indicated Iran is enriching Uranium to for use in specialized nuclear cents to generate energy.

Such steps imply that Iranian oil supplies are unlikely to return to the global market any time soon as tensions persist with the US.