Crude prices lifted around one per cent early this morning on the back of a weaker US dollar.
As the weaker dollar made oil cheaper for countries using other currencies, the threat of increased US drilling activity kept a cap on rises. Investors are worried an output cut led by the Organisation of the Petroleum Exporting Countries (Opec) will not curb the supply glut.
Brent crude, the global benchmark, increased 1.23 per cent to $46.10 per barrel in morning trading after it plunged below $45 last week to its lowest level since November 2016.
US benchmark West Texas Intermediate (WTI) prices were trading 1.23 per cent higher at $43.54 per barrel this morning.
"Crude oilprices have extended their rally from Wednesday’s lows," said analysts Mike van Dulken and Henry Croft at Accendo Markets.
However, they cautioned that crude prices have yet to convince markets they can overcome their falling channels of the last month.
"Trend and momentum indicators remain comfortably negative," said Ipek Ozkardeskaya, senior market analyst at London Capital Group.
Despite the gains, both benchmarks' prices have fallen around 13 per cent since Opec and non-Opec nations agreed to extend a deal to cut production until March 2018 - Brent traded around $54 per barrel while WTI was priced at $51 per barrel in the days before the meeting.
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