Crude oil prices rallied with Nymex December West Texas Intermediate up $1 to $77.35 a barrel while ICE January Brent added 99 cents to $77.30 a barrel.
Olivier Jakob, head of Swiss-based oil consultancy Petromatrix, said global markets were seeing a continuation of risk appetite but this was largely sponsored by continued pressure on the dollar.
“As long as the dollar bashing continues, there will be some support coming to commodities and to oil, but the risk concentration on the (short) dollar trade is increasing by the day as fundamentals do not provide enough support,” said Mr Jakob.
Technical analysts said WTI remained rangebound between a high of $80 a barrel and a low of $75.
“As long as the dollar can still be pushed lower, traders will be hesitant to hold short positions below $75but as long as the statistics are not showing any signs of improving demand, it will likewise be difficult to hold long positions above $80,” said Petromatrix.
WTI December options are due to expire on Tuesday but traders said the spot price was too far from the large concentrations of $85 calls (right to buy) or $70 puts (right to sell) for these to act as a significant gravitational pull on the futures market.