Oil prices jump on dollar drop and global economy focus

Oil prices saw an uptick, climbing over $1 per barrel on Tuesday as investors redirected their attention from Middle East tensions to the broader state of global economies.

This spike coincided with the weakening of the US dollar index, which was prompted by S&P Global data revealing a slowdown in American business activity in April, reaching a four-month low due to weakened demand.

A weaker dollar tends to boost demand for oil priced in dollars among investors using other currencies.

Brent futures increased by $1.42 or 1.6% to settle at $88.42/barrel.

WTI rose by $1.46 or 1.8% to settle at $83.36/barrel.