Investing.com - Oil prices were higher in European trade on Tuesday, after losing ground overnight, as a broadly weaker greenback boosted the appeal of dollar-priced commodities.
The dollar inched down against a basket of six major currencies, slipping to a low of 92.23 at one point on Tuesday, its lowest level since January 2015. It last stood at 92.27, down 0.3% for the day.
Oil prices typically strengthen when the U.S. currency weakens as the dollar-priced commodity becomes cheaper for holders of other currencies.
Crude oil for June delivery on the New York Mercantile Exchange tacked on 56 cents, or 1.25%, to trade at $45.34 a barrel by 06:54GMT, or 3:54AM ET. A day earlier, Nymex prices lost $1.14, or 2.48%, after data showed rising oil stockpiles in the U.S.
According to private forecaster Genscape, supply levels at the key U.S. delivery hub in Cushing, Oklahoma rose by 871,000 barrels last week.
Nymex oil prices are up nearly 50% since falling to 13-year lows at $26.05 in February, as a decline in U.S. shale production boosted sentiment. However, analysts warned that market conditions remained weak due to an ongoing glut.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for July delivery rose 55 cents, or 1.2%, to trade at $46.38 a barrel after falling $1.54 on Monday as increased production from the Organization of the Petroleum Exporting Countries dampened sentiment.
A monthly survey of OPEC producers by news agency Reuters suggested April output from the cartel was up 170,000 barrels a day month-on-month at 32.64 million barrels a day, as production increases led by Iran and Iraq more than offset a strike in Kuwait and other outages.
Brent futures prices are up by roughly 45% since briefly dropping below $30 a barrel in mid-February, despite the collapse of talks at a Doha summit in April aimed at achieving a production freeze among OPEC and Non-OPEC producers. OPEC meets on June 2 in Vienna and may discuss the freeze initiative again.
Meanwhile, Brent's premium to the WTI crude contract stood at $1.04 a barrel, compared to a gap of $1.05 by close of trade on Monday.