Oil prices rise by 3%

The Punch - Nigeria

Oil rose as much as three per cent on Tuesday as a weak dollar lifted commodities denominated in the currency and the Organisation of Petroleum Exporting Countries raised slightly its forecast for world oil demand growth.
Violence in Yemen also boosted crude prices, raising concerns over the security of Middle East supplies.
The dollar fell on bond market gyrations, making oil and other commodities priced in the greenback more affordable to holders of the euro and other currencies, according to Reuters.
OPEC tweaked its 2015 world oil demand growth forecast to 1.18 million barrels per day, above a previous estimate of 1.17 million.
Saudi-led air strikes aimed at Iran-allied Houthis hit on a rocket base in the Yemen capital Sanaa, killing 90 people and wounding 300 ahead of a five-day truce set to begin later Tuesday. Yemen is a marginal oil producer but its proximity to shipping lanes has raised concerns.
US crude settled up $1.50, or 2.5 per cent, at $60.75 a barrel.
North Sea Brent, a more widely used benchmark for oil, settled up $1.95, or three per cent, at $66.86.
Oil had its biggest monthly gain in six years in April, rising up to 25 percent on signs a global glut was easing. The market has been beset with volatility since by fears that higher prices were encouraging more production.
“The market is really torn between wanting to be on the bullish side when you have a weaker dollar and geopolitical situations like today, and staying in accordance with fundamentals, when there’s already a deluge of West African crude barrels out there without buyers,” said Andrew Lipow, president of Houston-based Lipow Oil Associates.