Crude prices rally on weak US dollar

Oil prices increased as declining dollar made the dollar-priced crude less expensive and more attractive for buyers holding other currencies.

The greenback declined against most major peers on Tuesday as the Federal Reserve is widely expected to leave interest rates unchanged after its policy meeting on Tuesday and Wednesday.

Oil prices also gained as US energy firms continued to slash spending. The active rigs count of the week ending April 22 lost 8 to 343, the lowest level since November 2009, oil services company Baker Hughes said on Friday.

The Organization of the Petroleum Exporting Countries could discuss the output freeze along with non-members at its next meeting in June, said Abdallah Salem el-Badri, Secretary-General of the group.

The West Texas Intermediate for June delivery moved up $1.40 to settle at $44.04 a barrel on the New York Mercantile Exchange, while Brent crude for June delivery climbed $1.26 dollars to close at $45.74 a barrel on the London ICE Futures Exchange.

--IANS

pgh/