Crude oil futures ended sharply higher on Tuesday after the Energy Information Administration's (EIA’s) forecast of a drop in oil production. The EIA has cut its forecast for U.S. oil production by 50,000 barrels per day this year following the OPEC+ extending output cuts through 2024. A weak dollar contributed as well to the rise in oil prices. The dollar dropped to a 2-month low after comments from several Fed officials suggested the U.S. central bank is nearing the end of its rate-hiking cycle.
Benchmark crude oil futures for August delivery rose $1.84 or about 2.52 percent to settle at $74.83 a barrel on the New York Mercantile Exchange. Brent crude for September delivery surged $1.71 or 2.20 percent to settle at $79.40 a barrel on London's Intercontinental Exchange.