Oil erased earlier losses to top US$83 a barrel as a weaker dollar boosted commodities priced in the currency.

Strengthening equities markets also supported crude futures, which spent much of the session trading in a narrow range after a closely watched measure of U.S. inflation soured sentiment.

“Oil markets are still trying to find an equilibrium price due to the lack of geopolitical headlines and data releases,” said Keshav Lohiya, founder of consultant Oilytics. 

Crude remains higher this year, aided by supply curbs from OPEC+ and tensions in the Middle East, although prices have pulled back from recent highs as geopolitical risks eased. The options skews remain in a bearish tilt toward puts, while the world’s biggest oil exchange-traded fund — the U.S. Oil Fund — posted its largest daily outflow on record.

The demand outlook also remains clouded, with a weakness showing in some refined products. Profit margins for turning crude into diesel in Asia were near the lowest level in nearly a year.

Prices:

• WTI for June delivery rose 0.9 per cent to $83.54 a barrel at 2:27 p.m. in New York
• Brent for June settlement rose 1 per cent to $88.98 a barrel.