WASHINGTON (dpa-AFX) - Oil prices rose on Tuesday, rebounding from their lowest levels since January as the dollar eased and Hurricane Ian advanced to the west coast of Florida, in the first shut-in of U.S. offshore oil and gas output this hurricane season.
Benchmark Brent crude futures jumped 1.6 percent to $84.22 barrel, while WTI crude futures were up 1.6 percent at $77.91.
The dollar rally paused, and the British pound stabilized after Bank of England (BoE) Governor Andrew Bailey stated that the central bank will raise rates as much as necessary at its next meeting to bring inflation back to the 2 percent target.
The BoE governor said the central bank is closely monitoring the weakness in the pound amid the turmoil in markets which saw the pound fall to a record low against the dollar.
Markets weighed the potential for a reduction in supply after two oil and gas operators in the U.S. Gulf of Mexico, BP and Chevron, said they had cut production at some of their assets and evacuated personnel in anticipation of Hurricane Ian.
Additionally, Iraq Oil Minister Ihsan Abdul Jabbar said on Monday that OPEC and its ally Russia were keeping an eye on the oil price situation, raising the possibility of the group cutting output at next week's meeting.
He stated in an interview broadcast on Iraqi state television, 'We don't want a significant spike in oil prices or a collapse.'
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