Oil prices rebounded on Tuesday as the U.S. dollar weakened against a basket of major currencies, adding hedge appeal of commodities, Xinhua reported.
Light, sweet crude for August delivery gained 1.74 dollars, or 2.6 percent, to settle at 69.24 dollars a barrel on the New York Mercantile Exchange.
The dollar fell the most in a month against the euro on speculation that the Federal Reserve may lower expectations of an interest rate increase this year, which made oil relatively cheaper to the investors holding other currencies. The market now is awaiting the government inventory report due to be released on Wednesday. According to a Reuters poll, analysts predicted the U.S. crude stocks would fall by 1.0 million barrels on lower imports, while gasoline and distillates stocks would rise.
In London, Brent crude for August delivery rose 1.82 dollars, or 2.7 percent, to settle at 68.80 dollars a barrel on the ICE Futures exchange.