Oil prices rise on weaker dollar and supply concerns

Oil prices rose on Tuesday, recovering after falling more than $1 a barrel earlier in the day on a weaker dollar and supply concerns highlighted by Saudi Arabia's Energy Minister.

Brent crude futures rose 26 cents to $93.52 a barrel, while US West Texas Intermediate crude futures rose 74 cents to $85.32. Both benchmarks rose and fell by $1 during the session. The US dollar index fell in afternoon trading, making dollar-denominated oil cheaper for holders of other currencies and helping push prices higher. Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman's comments that energy stocks are being used as a mechanism to manipulate markets also supported prices. Speaking at the Future Initiative Investment (FII) conference in Riyadh, Salman said, "It is my duty to make it clear that losing emergency stocks could be painful in the coming months." Meanwhile, Fatih Birol, head of the International Energy Agency (IEA), said the contraction of liquefied natural gas (LNG) markets worldwide and supply cuts by major oil producers have put the world in the midst of the "first real global energy crisis." Phil Flynn, an analyst at Price Futures Group, said comments from Riyadh and the IEA were "a reminder that as far as the energy crisis is concerned, it is far from over". "There are still concerns in the market that there is oversupply." But uncertain economic activity in the United States and China, the world's two biggest oil consumers, limited oil's gains. On Monday, government data showed that China's crude oil imports in September were 2% lower than a year earlier, while business activity contracted in the eurozone, Britain and the United States in October. Goldman Sachs (NYSE:GS) Chief Executive Officer David Solomon said he believes a recession in the US is "very likely", while a recession in Europe is possible. Solomon said at the FII conference that the US Federal Reserve could raise its benchmark overnight rate beyond the 4.50%-4.75% range if it does not see real changes in its behavior. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!