Oil resumes rally near 2-month peak on improved sentiment

Oil prices rose on Tuesday, resuming gains after a 2-day pause due to profit-taking, rising again near a 2-month high thanks to improved market sentiment, while the US dollar fell against its peers ahead of Jerome Powell's testimony, in addition to expectations of a drop in the US crude inventories.

US crude rose 1.5% to $79.64 a barrel, after opening at $78.43, and hit a low at $78.39, and Brent crude rose 1.5% to $82.22 a barrel, after opening at $80.98, and hit a low at $80.91.

The US crude fell 0.6% yesterday, and Brent fell 1%, due to profit-taking from the 2-month high hit on Friday.

The market sentiment improved globally on Tuesday, which is  reflected in the recovery of most global stocks, due to the US Treasury yields' drop for the second day in a row.

The dollar index fell more than 0.2% today, which lifts prices of dollar-denominated commodities.

The US dollar is falling as the US bonds' rally paused, ahead of Federal Reserve Chairman Jerome Powell's testimony before Congress later today.

The American Petroleum Institute will release later today its preliminary report on the US crude inventories, and the US Energy Information Administration will release the official data on Wednesday.

Otherwise, several analysts said that OPEC-Plus output hikes are less than the increase allowed under the supply cut agreement, as some countries, including Nigeria, produce less than its share.