Oil rallied for a third straight day on Tuesday as bulls convinced the market had hit bottom after a seven-month rout pounced on a weak dollar and cuts in oil firms’ spending plans despite signs crude stocks were rising without let up.
U.S. crude closed up $3.48, or 7 percent, at $53.05 per barrel, marking its highest settlement this year. WTI crude rose as much as 9.4 percent earlier to a session high of $54.24. Benchmark Brent crude oil was last up $3 at $58 a barrel.
US. crude prices have gained about 20 percent since the market was jolted by news on Friday that the number of U.S. oil drilling rigs had fallen their most in a week in nearly 30 years after the 60 percent selloff that began last summer.