Oil prices rose on Tuesday, helped by the dollar’s first daily fall in a week, but still faced their biggest monthly drop since March in the face of a global supply glut.
Expectations of more Iranian supply following a nuclear deal and concerns that economic worries in China and Europe will weigh on demand have put pressure on oil this month,
stripping 11 percent off the price of crude so far in July.
The dollar was down 0.5 percent, having fallen for the first time in a week against a basket of currencies, but held just shy of three-month highs.
A rising dollar makes it more profitable for non-U.S. investors to sell dollar-denominated assets.
“Macroeconomically, the dollar is strongly bid as people are now pretty much convinced that the Fed will hike rates this year, whether that is in September or December,” BNP Paribas analyst Harry Tchilinguirian said.