The January contract for U.S. crude oil settled higher on Tuesday after touching a more than five-year low earlier in the session as players sought a sustainable price for oil in a market haunted by oversupply concerns.
WTI futures settled up 77 cents at $63.82 on the Chicago Mercantile Exchange, after swinging between a high of $64.20 and low of $62.25. Sentiment in oil was aided somewhat by a weaker dollar that boosted the value of commodities denominated in the currency, traders said.
Lower capital expenditure for next year planned by oil companies such as ConocoPhillips also helped as they indicated less drilling and production. But fear of a further slide after a 40-percent drop in Brent’s value since June kept market bulls away, analysts said.
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