Oil prices are up sharply in Asian hours, extending hefty gains from the previous sessions as the dollar index hit a seven-week low and on continued rumors about a possible deal to cut abundant supply.
Benchmark U.S. WTI light sweet crude prices were up 1.1 percent at $32.63 a barrel and European Brent crude is up 0.8 percent at $35.32 a barrel around noon in Asia as the U.S. dollar index plunged after New York Fed President William Dudley reduced expectations of the pace of future rate hikes.
A weaker dollar will make it cheaper to buy U.S. dollar denominated commodities such as crude oil. WTI closed 8 percent higher while Brent ended 7 percent higher in the previous sessions.
Meanwhile, speculation continue to swirl over the likelihood of an emergency OPEC meeting and a deal between OPEC and non-OPEC countries to cut production.
Analysts note that the slump in the dollar boosted oil prices despite large increases in both U.S. crude oil and gasoline stocks, but were cautious on calling a recovery.