Oil prices rose on Tuesday, boosted by a weaker dollar and by expectations that demand could grow quickly enough to match supply this year, although concern over a potential battle for market share between Saudi Arabia and Iran limited gains.
Front-month Brent crude futures LCOc1 were up by 59 cents to $45.04 a barrel at 1122 GMT (6:22 a.m. ET). U.S. crude futures CLc1 rose 54 cents to $43.18 a barrel.
“Market fundamentals continue to suggest that the combination of robust demand and weak supply growth will move global oil markets closer into balance by the end of the year,” BP Chief Executive Bob Dudley said in a statement after the firm reported stronger-than-expected results.
Helping prices were a weaker dollar .DXY and a rush of new investment into crude futures.
The oil price has risen by nearly 14 percent in April, putting it on track for its largest monthly gain in a year.
However, some analysts warned it was too early to call an end to the crude glut as Saudi Arabia and Iran could ramp up output further in a race for customers.
“The biggest bear risk to the oil market right now is that Iran’s ramp-up accelerates and then that Saudi Arabia does the same,” Citi said in a note to clients.
